Sandra is listing a four-unit residential building in Portland, Oregon. She tells her principal broker that she is aware of a leaking roof on the property but does not want to disclose it because she fears it will reduce the sale price. Her principal broker advises her that she must disclose this condition. Which statement best explains the legal basis for the principal broker's advice under Oregon law?
Correct Answer
B) ORS 105.464 requires sellers to disclose known material defects on the disclosure statement, and a leaking roof is a known material defect that Sandra must report
ORS 105.464 requires sellers of residential property with one to four units to complete a written disclosure statement covering known material defects and property conditions. Because Sandra has actual knowledge of the leaking roof, she is legally required to disclose it. Concealing a known material defect violates Oregon's disclosure statute and could expose her to civil liability.
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