Marcus is selling his three-bedroom home in Kansas City. His listing agent, Jennifer, is aware that the basement has experienced water intrusion twice in the past three years, though Marcus did not mention this on the seller disclosure statement. Under Missouri law, which of the following best describes Jennifer's obligation?
Correct Answer
B) Jennifer must disclose the known material defect to prospective buyers regardless of what the seller included in the disclosure statement.
Under RSMo Chapter 339 and Missouri agency law, a licensee has an independent duty to disclose known material facts that affect the value or desirability of the property to all parties in a transaction. The seller's omission from the disclosure statement does not eliminate Jennifer's own duty as a licensee to disclose known material defects such as recurring basement water intrusion. Failure to disclose could also expose Jennifer to liability under the Missouri Merchandising Practices Act (RSMo § 407.010 et seq.) for concealment or misrepresentation.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
Radon disclosure involves informing buyers about the presence or potential presence of radon gas in a property. Radon is a naturally occurring radioactive gas that can accumulate in buildings and is the second leading cause of lung cancer.
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