A purchase agreement in Nebraska for a 6-unit apartment building is signed without a Seller Property Condition Disclosure Statement. The buyer later discovers significant plumbing defects and argues the seller violated the Nebraska Seller Property Condition Disclosure Act. Which of the following is the most accurate statement about the seller's disclosure obligation in this transaction?
Correct Answer
D) The seller did not violate the Act, but may still have common law duties to disclose known material defects
The Nebraska Seller Property Condition Disclosure Act (Neb. Rev. Stat. §§ 76-2,120 to 76-2,130) applies only to residential real property consisting of one to four dwelling units. A 6-unit apartment building is excluded from the Act's statutory disclosure requirement. However, the seller is not entirely without disclosure obligations — Nebraska common law imposes a duty on sellers not to actively conceal known material defects, and the seller's agent may have independent disclosure duties under the Nebraska Real Estate License Act. The buyer's claim under the specific statute fails, but other legal theories may remain available.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Contract termination occurs when a contract is ended or discharged, releasing both parties from their obligations. A contract can be terminated through performance, mutual agreement, operation of law, or breach.
A counteroffer is a response to an original offer that changes one or more terms of the offer, effectively rejecting the original offer and creating a new offer. The party who makes the counteroffer becomes the new offeror.
Earnest money is a deposit made by the buyer at the time of the offer or shortly after to demonstrate good faith and serious intent to purchase the property. It is also called a good faith deposit.
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