A buyer learns after closing that a previous owner died of HIV/AIDS in the home. The buyer wants to rescind the contract. In most states, is the buyer likely to succeed?
Correct Answer
A) No, because most states protect sellers from having to disclose HIV/AIDS-related deaths
Most states have enacted laws protecting sellers from having to disclose that a prior occupant had HIV/AIDS or died from an AIDS-related illness, treating such information as a protected characteristic.
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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.
More Property Disclosures Questions
A builder warranty typically excludes:
Under TRID, the Loan Estimate replaced which older disclosure form that was previously provided to borrowers early in the loan process?
What is the primary purpose of the Loan Estimate form under TRID?
The Closing Disclosure must be provided to the borrower at least three business days before closing. If the closing is scheduled for Friday, and Saturdays and Sundays are not business days for this lender, when is the latest the borrower can receive the Closing Disclosure?
A borrower is buying a home and the lender requires escrow for property taxes and homeowners insurance. Where does the borrower find information about the initial escrow deposit required at closing?
- → What is the 'Annual Percentage Rate' (APR) as disclosed on the Loan Estimate and Closing Disclosure?
- → The Closing Disclosure replaced which two older disclosure forms that were previously used in residential mortgage transactions?
- → Under TRID, all of the following are included on Page 1 of the Loan Estimate EXCEPT.
- → Under TRID, all of the following pieces of information trigger the lender's obligation to provide a Loan Estimate EXCEPT.
- → A borrower wants to waive the three-business-day waiting period after receiving the Closing Disclosure because an emergency requires the borrower to move into the property immediately. Under TRID, can the borrower waive the waiting period?
- → A real estate agent is explaining TRID disclosures to a buyer. All of the following are on the Closing Disclosure EXCEPT.
- → A borrower is told by the lender that certain closing costs may change between the Loan Estimate and Closing Disclosure. Under TRID, which of the following fees has the strictest tolerance limit?
- → The Closing Disclosure includes an 'Other Costs' section. A borrower notices a charge for a home inspection that the borrower ordered independently. Who is responsible for this cost?
- → A borrower compares the Loan Estimate to the Closing Disclosure and notices that the recording fees increased by $50 from $350 to $400. Recording fees are set by the government. Under TRID tolerance rules, is this increase allowed?
- → A borrower receives a Loan Estimate and notices that the estimated title insurance fee is $1,200. At closing, the Closing Disclosure shows the title insurance fee is $1,400. The borrower was allowed to shop for title insurance from a list provided by the lender. Under TRID tolerance rules, is this increase permissible?
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A property was the scene of a highly publicized murder ten years ago. The home has been completely renovated and has no physical issues. Buyers who learn the history typically offer 15-20% below market value. This property is best classified as
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