Linda is selling her home in Henderson, Nevada. After she signs the purchase agreement and delivers the Seller's Real Property Disclosure Form, she discovers a previously unknown crack in the foundation. Escrow has not yet closed. Under NRS Chapter 113, what is Linda's obligation with respect to this newly discovered defect?
Correct Answer
B) Linda must amend or supplement the Seller's Real Property Disclosure Form to disclose the newly discovered material defect before closing.
Under NRS Chapter 113, if a seller discovers a new material defect after delivering the Seller's Real Property Disclosure Form but before closing, the seller has an ongoing obligation to amend or supplement the disclosure form to reflect the newly discovered condition. The foundation crack is a material defect that would affect a buyer's decision, and the seller's disclosure duty is a continuing obligation that does not end at the time of initial delivery. Failure to update the form could expose Linda to civil liability for non-disclosure.
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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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