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Pa Seller DisclosureSeller_disclosure_68pacs7301MEDIUM

Jessica is a listing agent in Pennsylvania. Her seller client tells her privately that the home has a serious mold problem in the attic but does not want to disclose it on the Property Disclosure Statement. What is Jessica's obligation under Pennsylvania law?

Correct Answer

C) Jessica must disclose the mold problem to the buyer because material defects override confidentiality obligations

Under Pennsylvania law, a licensee's duty to disclose known material defects overrides the duty of confidentiality. Mold in the attic is a material defect that must be disclosed. If the seller refuses to disclose, the agent must either ensure disclosure is made or withdraw from the listing.

Answer Options
A
Jessica must respect client confidentiality and say nothing to the buyer
B
Jessica should recommend the seller fix the mold before listing rather than disclose it
C
Jessica must disclose the mold problem to the buyer because material defects override confidentiality obligations
D
Jessica may continue the listing without disclosure as long as she adds a general disclaimer

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Related Topics & Key Terms

Key Terms:

agent_obligationmaterial_defectconfidentiality_overridemold_disclosure

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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