Under North Dakota law governing seller property condition disclosures (NDCC Chapter 47-10.1), which of the following transactions is NOT exempt from the mandatory written disclosure requirement?
Correct Answer
B) A sale of a newly constructed home being sold for the first time by a licensed builder-developer
A sale of a newly constructed home by a licensed builder-developer for the first time is NOT exempt from the seller's disclosure requirement under NDCC Chapter 47-10.1. While new construction may involve different disclosures, the statute's exemptions are focused on involuntary or fiduciary transfers where the transferor lacks personal knowledge of the property's condition — a builder-developer has direct knowledge of the construction and is not in the same position as a fiduciary acting without personal knowledge. This transaction falls within the scope of the disclosure obligation.
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Related Topics & Key Terms
Key Terms:
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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