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Mandated DisclosuresEnvironmental_hazardsEASY

Under the Tennessee Residential Property Condition Disclosure Act, which of the following best describes a seller's obligation regarding known environmental hazards on the property?

Correct Answer

B) Sellers must disclose known material defects, including known environmental hazards, on the TREC-approved disclosure form.

Under Tenn. Code Ann. § 66-5-201 et seq., the Tennessee Residential Property Condition Disclosure Act requires sellers of 1-4 unit residential property to complete the TREC-approved disclosure form revealing all known material defects, which includes known environmental hazards such as underground storage tanks, hazardous substances, or contamination. No professional inspection is mandated by the statute itself; the seller discloses what they personally know.

Answer Options
A
Sellers must hire a licensed environmental inspector and attach the report to the disclosure form.
B
Sellers must disclose known material defects, including known environmental hazards, on the TREC-approved disclosure form.
C
Sellers are only required to disclose environmental hazards if the property is located within a designated flood zone.
D
Sellers must disclose environmental hazards only when the buyer submits a written request before contract execution.

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Related Topics & Key Terms

Key Terms:

property_condition_disclosureenvironmental_hazardsmaterial_defectsseller_disclosure
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