A Missouri court orders the sale of a residential fourplex as part of a divorce settlement between two co-owners. The property is sold to a third-party buyer. Under the Missouri Seller Disclosure Act, which of the following is correct regarding the disclosure obligation?
Correct Answer
B) The transaction is exempt from the seller disclosure requirement because it is a court-ordered transfer.
RSMo § 339.730 et seq. specifically exempts court-ordered transfers from the seller disclosure requirement. Because the sale of the fourplex is mandated by a court order as part of the divorce settlement, it qualifies for this exemption, and no seller disclosure statement is required regardless of the property type or the identity of the buyer.
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Related Topics & Key Terms
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Related Concepts
An as-is clause in a real estate contract states that the buyer accepts the property in its current condition without requiring the seller to make any repairs. However, an as-is sale does NOT eliminate the seller's obligation to disclose known defects.
Asbestos disclosure involves informing buyers about the presence of asbestos-containing materials (ACMs) in a property. Asbestos was commonly used in construction materials before 1980 and poses health risks when fibers become airborne.
Violating fair housing laws can lead to significant penalties, including fines, civil liability, and professional discipline.
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