Angela is selling her triplex in Ogden, Utah. She is aware that the property's sewer line has a partial blockage that causes slow drainage, but she believes the issue is minor and does not mention it on the Seller's Property Condition Disclosure form. After closing, the buyer discovers the blockage and incurs $8,000 in repair costs. Which statement best describes Angela's potential liability under the Utah Seller Disclosure Act?
Correct Answer
B) Angela may be liable for failing to disclose a known material defect, regardless of whether the buyer conducted an inspection
Under Utah Code Ann. § 57-27, sellers are required to disclose known material defects in the property. A partial sewer line blockage that the seller was aware of constitutes a known material defect. The fact that the buyer had a due diligence period or could have hired an inspector does not relieve the seller of the affirmative duty to disclose known defects. Angela's failure to disclose this known issue exposes her to liability for damages resulting from the non-disclosure.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Fair housing laws apply to a broad range of activities related to housing, including sale, rental, financing, and advertising.
A seller's disclosure statement is a form that sellers complete to inform buyers about the condition and history of the property, including known defects, past repairs, insurance claims, and environmental issues.
Many states and localities have fair housing laws that expand upon the protections offered by the federal Fair Housing Act.
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