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Pa Seller DisclosureSeller_disclosure_68pacs7301MEDIUM

Karen is a listing agent in Pennsylvania. She learns from a neighbor that her seller's property was the site of a methamphetamine lab several years before the seller purchased it. The seller genuinely has no knowledge of this history. Under Pennsylvania law, what is Karen's obligation?

Correct Answer

C) Karen should verify the claim through public records and, if confirmed, ensure appropriate disclosure is made

As a licensee, Karen has a duty to act with reasonable care and to disclose material facts that she knows or should know. Information about a former meth lab is potentially material. Karen should verify the information and, if confirmed, ensure it is appropriately disclosed.

Answer Options
A
Karen must disclose this information to the buyer because she has a duty to disclose all known material facts
B
Karen should ignore the information because it is based on hearsay from a neighbor
C
Karen should verify the claim through public records and, if confirmed, ensure appropriate disclosure is made
D
Karen has no obligation because the seller did not know about the property's history

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Related Topics & Key Terms

Key Terms:

agent_dutymeth_lab_historymaterial_factsverificationRELA

Related Concepts

HOA disclosure requires informing buyers about the existence, rules, fees, financial health, and restrictions of a homeowners association governing the property. This information helps buyers understand their obligations before purchase.

The Lead-Based Paint Disclosure is a federally mandated disclosure required for all residential properties built before 1978. Sellers and landlords must disclose known lead-based paint hazards and provide the EPA pamphlet "Protect Your Family From Lead in Your Home."

A material defect is a condition that significantly affects the value, desirability, or safety of a property and that would likely influence a reasonable buyer's decision to purchase or the price they would pay.

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