Seller Adams completes the Seller's Disclosure Notice and checks 'unknown' for the condition of the electrical system. The buyer later discovers significant electrical problems. Under Texas law, what is the seller's liability?
Correct Answer
A) The seller is not liable if the seller genuinely did not know about the electrical problems
The Seller's Disclosure Notice is based on the seller's actual knowledge. If the seller genuinely did not know about the electrical problems, checking 'unknown' is appropriate and the seller is generally not liable for conditions they were unaware of.
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Related Topics & Key Terms
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Related Concepts
A seller's disclosure statement is a form that sellers complete to inform buyers about the condition and history of the property, including known defects, past repairs, insurance claims, and environmental issues.
Many states and localities have fair housing laws that expand upon the protections offered by the federal Fair Housing Act.
A stigmatized property is one that has an undesirable reputation due to events that occurred on the property or nearby, such as a murder, suicide, alleged haunting, or proximity to a registered sex offender. The stigma is psychological, not physical.
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