Chen is a licensed sales agent in Utah. He is listing a home for sale where the seller, Barbara, informs him confidentially that the property was previously used as a methamphetamine lab five years ago, but that it was professionally remediated and cleared by the Utah Department of Environmental Quality. Barbara instructs Chen not to disclose this to buyers. Under Utah law, how should Chen handle this situation?
Correct Answer
B) Chen must disclose the prior meth lab use to all prospective buyers as a known material fact, regardless of Barbara's instruction
In Utah, prior use of a property as a methamphetamine laboratory is a known material fact that must be disclosed to prospective buyers, regardless of whether the property has been remediated. Utah Code Ann. § 57-27 and Utah's specific provisions regarding meth-contaminated properties (Utah Code Ann. § 19-6-901 et seq., the Utah Illegal Drug Operations Property Remediation Act) require disclosure of prior meth lab use. A licensee's duty to disclose known material facts overrides a seller's instruction to remain silent on such a significant issue. Chen cannot follow Barbara's instruction to withhold this information.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Mold disclosure involves informing buyers about the presence of mold or conditions that are conducive to mold growth in a property. While no federal mold disclosure law exists, many states require disclosure of known mold issues.
A property condition disclosure is a written statement by the seller detailing the known condition of the property, including defects, repairs, and issues with major systems. Most states require sellers to complete this form.
Protected classes are groups of people who are legally shielded from discrimination based on specific characteristics.
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