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Texas Property Code DisclosuresSellers_disclosure_noticeMEDIUM

Seller Chen provides the Seller's Disclosure Notice but intentionally omits a known foundation crack. After closing, the buyer discovers the crack and sues Chen. Under Texas law, what type of claim can the buyer assert?

Correct Answer

D) Fraudulent concealment or misrepresentation, which may include actual and punitive damages

Intentionally concealing a known defect on the Seller's Disclosure Notice constitutes fraudulent concealment or misrepresentation. The buyer may seek actual damages, and in some cases, punitive damages for the intentional fraud.

Answer Options
A
Breach of warranty only, limited to repair costs
B
Breach of contract limited to the purchase price difference
C
Only a TREC complaint, not a civil lawsuit
D
Fraudulent concealment or misrepresentation, which may include actual and punitive damages

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Related Topics & Key Terms

Key Terms:

sellers_disclosurefraudulent_concealmentdamagesintentional_omission

Related Concepts

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.

Megan's Law requires states to make information about registered sex offenders available to the public. Some states require real estate agents to inform buyers about the availability of sex offender registries.

Mold disclosure involves informing buyers about the presence of mold or conditions that are conducive to mold growth in a property. While no federal mold disclosure law exists, many states require disclosure of known mold issues.

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