David is purchasing a newly constructed home in St. Louis from a builder who provides a full one-year builder's warranty on all workmanship and materials. The builder has not provided a seller disclosure statement. David's buyer's agent tells him this is acceptable under Missouri law. Is the buyer's agent correct?
Correct Answer
B) Yes, the agent is correct; new construction sold with a builder's warranty is exempt from the Missouri Seller Disclosure Act.
RSMo § 339.730 et seq. includes an exemption for new construction that is accompanied by a builder's warranty. Because the builder is providing a full warranty on workmanship and materials, this transaction qualifies for the new construction with warranty exemption, and no seller disclosure statement is required. The buyer's agent is therefore correct.
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Related Topics & Key Terms
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Related Concepts
Megan's Law requires states to make information about registered sex offenders available to the public. Some states require real estate agents to inform buyers about the availability of sex offender registries.
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.
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