A bank acquires a single-family home through a trustee's sale after the borrower defaults on a deed of trust. The bank lists the property for sale. Under the Missouri Seller Disclosure Act, which of the following statements is correct?
Correct Answer
B) The bank is exempt from the seller disclosure requirement because the transfer results from a foreclosure or trustee's sale.
RSMo § 339.730 et seq. specifically exempts transfers resulting from foreclosure or trustee's sales from the seller disclosure requirement. Because the bank acquired the property through a trustee's sale under Missouri's non-judicial foreclosure process, it qualifies for this exemption and is not required to complete a written disclosure statement.
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Related Topics & Key Terms
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Related Concepts
Mold disclosure involves informing buyers about the presence of mold or conditions that are conducive to mold growth in a property. While no federal mold disclosure law exists, many states require disclosure of known mold issues.
A property condition disclosure is a written statement by the seller detailing the known condition of the property, including defects, repairs, and issues with major systems. Most states require sellers to complete this form.
Protected classes are groups of people who are legally shielded from discrimination based on specific characteristics.
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