Seller Wallace sells a property and provides the Seller's Disclosure Notice. The notice states the HVAC system is 'functioning.' Two weeks after closing, the HVAC fails completely. A contractor determines the system was deteriorating for months. Under Texas law, is Wallace liable?
Correct Answer
B) Yes, if Wallace knew or should have known the HVAC was deteriorating
Under Texas Property Code §5.008, the seller is liable if they knew or should have known about the deteriorating condition. If the system was showing signs of failure and the seller ignored them, the 'functioning' representation could be considered a misrepresentation.
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Related Topics & Key Terms
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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.
More Texas Property Code Disclosures Questions
In Texas, when a property subject to an HOA is sold, the seller must ensure that all of the following are current EXCEPT:
Under the Texas Seller's Disclosure Notice, a seller must disclose whether the property is subject to:
In Texas, what does the term 'executive rights' mean in the context of mineral ownership?
A surface owner in Texas experiences property damage from drilling operations conducted by the mineral lessee. Under Texas law, the surface owner may:
Seller Park has owned an investment property for 3 years but has never lived in it. Tenants have reported occasional plumbing issues but Park has not personally verified the problems. On the Seller's Disclosure Notice, Park checks 'unknown' for plumbing condition. Is this appropriate?
- → The Texas Seller's Disclosure Notice requires disclosure of all of the following items EXCEPT:
- → Under Texas Property Code §5.008, all of the following sellers must provide a Seller's Disclosure Notice EXCEPT:
- → Under Texas Property Code §5.008, which of the following items is NOT required to be disclosed on the Seller's Disclosure Notice?
- → Seller Quinn knows that the property experienced flooding during a major storm 8 years ago. The damage was repaired, and Quinn believes the problem was resolved. On the Seller's Disclosure Notice, Quinn checks 'No' for 'Previous flooding.' Under Texas law, has Quinn made a misrepresentation?
- → Seller Harris provides the Seller's Disclosure Notice indicating 'No' for previous water damage. The buyer's inspector finds evidence of previous water stains on the ceiling that were painted over. The seller claims the stains were from a minor incident they forgot about. Under Texas law, what is the likely outcome?
- → Seller Adams is a builder selling a newly constructed home. Under Texas Property Code §5.008, must Adams provide a Seller's Disclosure Notice for the new construction?
- → Under Texas law, the Seller's Disclosure Notice protects the seller from liability in all of the following situations EXCEPT:
- → A Texas seller is completing the Seller’s Disclosure Notice after the property had prior structural repairs and termite treatment. Which condition must be addressed on the notice?
- → Under Texas Property Code §5.008, the Seller's Disclosure Notice must be completed by:
- → Under Texas Property Code, a property owners' association is prohibited from doing all of the following EXCEPT:
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Previous Question
Buyer Lee receives the Seller's Disclosure Notice before signing the purchase contract. After reviewing it, Lee decides to proceed with the purchase. After closing, Lee discovers a defect that was accurately disclosed on the notice. Can Lee sue the seller?
Next Question
Under Texas Property Code §5.008, the Seller's Disclosure Notice applies to the sale of: