Under the Seller's Disclosure Notice required by Texas Property Code §5.008, the seller must disclose known defects. Which of the following must the seller disclose?
Correct Answer
D) All known material defects and conditions of the property
Under Texas Property Code §5.008, the seller must disclose all known material defects and conditions of the property on the Seller's Disclosure Notice. This includes defects the seller has personal knowledge of, regardless of professional documentation.
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Related Topics & Key Terms
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Related Concepts
An inspection contingency gives the buyer the right to have the property professionally inspected within a specified time frame and to negotiate repairs or cancel the contract based on the findings.
Liquidated damages are a predetermined amount of money specified in the contract that the non-breaching party is entitled to receive if the other party breaches. In real estate, the earnest money deposit typically serves as liquidated damages.
Novation is the substitution of a new contract for an existing one, or the replacement of one party with a new party, with the consent of all parties involved. The original party is completely released from all obligations.
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