Seller Reed is an investor who purchased a property 6 months ago and never lived in it. Reed hired a property manager who reported no issues. Reed sells the property and provides a Seller's Disclosure with most items marked 'unknown.' The buyer later discovers significant mold. Can Reed avoid liability by claiming ignorance?
Correct Answer
A) No, if Reed failed to make reasonable inquiry about the property's condition before completing the disclosure
Under Texas law, while the disclosure is based on the seller's knowledge, a seller cannot avoid liability by willfully remaining ignorant. If Reed failed to make reasonable inquiries—such as reviewing the property manager's records or conducting a basic inspection—Reed may be liable for what a reasonable investigation would have revealed.
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More Texas Property Code Disclosures Questions
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