A seller in Virginia provides a disclaimer statement under the Virginia Residential Property Disclosure Act. After settlement, the buyer discovers that the roof has a significant leak that the seller knew about but did not disclose. Which of the following most accurately describes the seller's potential liability?
Correct Answer
B) The seller may still be liable for fraud or intentional misrepresentation if the seller actively concealed a known material defect, even after providing a disclaimer
While Virginia's disclaimer option under the RPDA (Va. Code § 55.1-700 et seq.) shifts the inspection burden to the buyer, it does not immunize a seller from fraud or intentional misrepresentation claims. If a seller actively concealed a known material defect — such as hiding a roof leak — the buyer may still pursue claims based on fraud or misrepresentation despite the disclaimer. The disclaimer protects against non-disclosure of unknown conditions, not active concealment.
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Related Topics & Key Terms
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Related Concepts
HOA disclosure requires informing buyers about the existence, rules, fees, financial health, and restrictions of a homeowners association governing the property. This information helps buyers understand their obligations before purchase.
The Lead-Based Paint Disclosure is a federally mandated disclosure required for all residential properties built before 1978. Sellers and landlords must disclose known lead-based paint hazards and provide the EPA pamphlet "Protect Your Family From Lead in Your Home."
A material defect is a condition that significantly affects the value, desirability, or safety of a property and that would likely influence a reasonable buyer's decision to purchase or the price they would pay.
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