Tom is selling his single-family home in Nashua, New Hampshire. He knows that the basement occasionally floods during heavy rain but decides not to mention it on the Residential Property Disclosure Form, believing the buyer's home inspection will reveal it. Under RSA 477:4-d, which statement best describes Tom's legal obligation?
Correct Answer
B) Tom must disclose all known material defects, including the flooding issue, on the Residential Property Disclosure Form.
RSA 477:4-d requires sellers of residential property to disclose all known material defects on the Residential Property Disclosure Form. Basement flooding is a material defect that Tom knows about, and he is legally obligated to disclose it regardless of whether a home inspection might reveal it. Failure to disclose known material defects can expose Tom to civil liability under RSA 477:4-d and potentially under the NH Consumer Protection Act (RSA 358-A).
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Related Topics & Key Terms
Key Terms:
Related Concepts
An option contract gives one party the exclusive right, but not the obligation, to purchase or lease a property at a specified price within a specified time period. The buyer pays option consideration to keep the option open.
A purchase agreement is a legally binding contract between a buyer and seller that outlines the terms and conditions for the sale of real property. It is also commonly called a sales contract, purchase and sale agreement, or earnest money agreement.
Specific performance is a court-ordered remedy that compels the breaching party to fulfill their obligations under the contract rather than simply paying monetary damages. It is an equitable remedy used when monetary damages would be inadequate.
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