Linda is selling her home in Nashua, NH. During the listing process, her agent discovers that a portion of the backyard is classified as a wetland under RSA 482-A. Linda says she was unaware of this and asks her agent whether it needs to be disclosed. Which of the following best describes the agent's disclosure obligation?
Correct Answer
A) Disclosure is required because wetland designation is a material fact that affects the buyer's use and development of the property
Under NH real estate practice and the Residential Property Disclosure Act (RSA 477:4-d), material facts affecting a property's use, value, or development potential must be disclosed to prospective buyers. A wetland designation under RSA 482-A is a material fact because it restricts what activities (such as filling, dredging, or construction) can occur on that portion of the property without a permit from NH DES. The agent has a professional and legal obligation to disclose this known material fact regardless of when the seller became aware of it.
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Related Topics & Key Terms
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Related Concepts
Environmental hazards disclosure involves informing buyers about environmental contamination or hazards affecting or potentially affecting a property, including underground storage tanks, contaminated soil, hazardous waste, and proximity to Superfund sites.
Flood zone disclosure requires informing buyers whether a property is located in a designated flood zone as mapped by FEMA. Properties in high-risk flood zones may require mandatory flood insurance.
HOA disclosure requires informing buyers about the existence, rules, fees, financial health, and restrictions of a homeowners association governing the property. This information helps buyers understand their obligations before purchase.
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