Sandra is selling her home in Las Vegas and is aware that the roof has a slow leak that she patched herself two years ago. She believes the patch has held and does not mention the roof issue on the Seller's Real Property Disclosure Form. After closing, the buyer discovers significant water damage in the attic. Under NRS Chapter 113, what is the most likely consequence for Sandra?
Correct Answer
A) Sandra may face civil liability for failing to disclose a known material defect on the Seller's Real Property Disclosure Form.
Under NRS Chapter 113, sellers are required to disclose all known material defects and conditions affecting the property on the Seller's Real Property Disclosure Form. A roof leak that Sandra was personally aware of constitutes a known material defect. Failure to disclose it exposes Sandra to civil liability, including potential rescission of the sale or damages. The fact that she made a repair does not eliminate the obligation to disclose the prior defect and the repair, as a buyer has the right to know about past and present conditions.
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Key Terms:
Related Concepts
A material defect is a condition that significantly affects the value, desirability, or safety of a property and that would likely influence a reasonable buyer's decision to purchase or the price they would pay.
Megan's Law requires states to make information about registered sex offenders available to the public. Some states require real estate agents to inform buyers about the availability of sex offender registries.
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.
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