A builder in Knoxville is selling a newly constructed single-family home covered by a comprehensive builder's warranty. The buyer's agent asks whether the Tennessee Residential Property Condition Disclosure form is required. Which statement is correct?
Correct Answer
B) The disclosure form is not required because new construction covered by a builder's warranty is exempt
Under Tenn. Code Ann. § 66-5-209, new construction covered by a builder's warranty is among the specific exemptions from the Tennessee Residential Property Condition Disclosure Act. Because the builder is providing a warranty that addresses the condition of the property, the statutory disclosure form is not required.
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Related Topics & Key Terms
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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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