A Texas buyer uses an FHA loan to purchase a home. After closing, the buyer discovers a major plumbing defect that was not disclosed by the seller. Which Texas law provides the buyer with consumer protection in this situation?
Correct Answer
A) The Texas Deceptive Trade Practices Act (DTPA) may provide the buyer with a cause of action against the seller for failure to disclose known defects
The Texas Deceptive Trade Practices Act (DTPA) protects consumers, including homebuyers, against deceptive acts and failure to disclose known defects. A buyer who discovers undisclosed defects may have a DTPA claim against the seller, potentially recovering actual damages plus statutory damages.
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Related Concepts
Closing costs are the fees and expenses paid by the buyer and seller at the closing of a real estate transaction, beyond the purchase price. They typically range from 2-5% of the purchase price.
A conventional loan is a mortgage that is not insured or guaranteed by a government agency such as the FHA, VA, or USDA. It is originated and funded by private lenders and may be conforming or non-conforming.
The debt-to-income ratio (DTI) compares a borrower's monthly debt obligations to their gross monthly income. It is used by lenders to determine how much mortgage a borrower can afford.
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