A buyer in Broken Arrow, Oklahoma is purchasing a single-family home from a seller who is in foreclosure. The lender is selling the property through a court-ordered foreclosure sale. The buyer asks the listing agent whether the seller must provide a Property Condition Disclosure Statement. Which response is most accurate under Oklahoma law?
Correct Answer
C) No, foreclosure sales are exempt from the Property Condition Disclosure Act requirements
Under the Oklahoma Residential Property Condition Disclosure Act (Title 60 O.S. §§ 831-839), certain transactions are exempt from the disclosure requirement. Foreclosure sales — where the lender or a court-appointed trustee is transferring title — are among the recognized exemptions. In a foreclosure sale, the seller (typically the lender or court) has no personal knowledge of the property's condition, making a seller's disclosure impractical and legally inapplicable.
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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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