Two siblings, David and Lisa, jointly own a residential property in Lawton, Oklahoma. David wants to sell his undivided interest to Lisa. Does the Oklahoma Residential Property Condition Disclosure Act require David to provide a disclosure statement to Lisa for this transfer?
Correct Answer
A) No, because transfers between co-owners are exempt from the disclosure requirement
The Oklahoma Residential Property Condition Disclosure Act (Title 60 O.S. §§ 831-839) includes an exemption for transfers between co-owners. When one co-owner sells or transfers their interest to another existing co-owner of the same property, the statutory disclosure requirement does not apply. David and Lisa are co-owners, so this transfer qualifies for the exemption.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An inspection contingency gives the buyer the right to have the property professionally inspected within a specified time frame and to negotiate repairs or cancel the contract based on the findings.
Liquidated damages are a predetermined amount of money specified in the contract that the non-breaching party is entitled to receive if the other party breaches. In real estate, the earnest money deposit typically serves as liquidated damages.
Novation is the substitution of a new contract for an existing one, or the replacement of one party with a new party, with the consent of all parties involved. The original party is completely released from all obligations.
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