A seller in Texas provides the Seller's Disclosure Notice and checks 'unknown' for several items related to the foundation. The buyer's inspector later discovers foundation cracks. What is the seller's liability?
Correct Answer
A) The seller may not be liable if they genuinely did not know about the cracks and did not act to conceal them
The Seller's Disclosure Notice requires disclosure of 'known' conditions. If the seller genuinely did not know about the foundation cracks and did not act to conceal them, the seller may not be liable. The key issue is whether the seller had actual knowledge.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A counteroffer is a response to an original offer that changes one or more terms of the offer, effectively rejecting the original offer and creating a new offer. The party who makes the counteroffer becomes the new offeror.
Earnest money is a deposit made by the buyer at the time of the offer or shortly after to demonstrate good faith and serious intent to purchase the property. It is also called a good faith deposit.
Equitable title is the buyer's interest in a property after a purchase contract is signed but before closing, giving the buyer the right to acquire legal title in the future. The seller retains legal title until the deed is delivered at closing.
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