Tom is purchasing a resale home in Fairfax County. The seller, Linda, provides Tom with a disclaimer statement under the Virginia Residential Property Disclosure Act rather than a full disclosure statement. After moving in, Tom discovers that the basement has a chronic water intrusion problem that Linda knew about for years but never mentioned. Which of the following most accurately describes Tom's legal position?
Correct Answer
A) Tom may have a claim against Linda because a disclaimer does not protect a seller who actively conceals a known material defect or commits fraud.
Under Virginia law, a disclaimer statement shifts the buyer's responsibility to inspect and discover defects, but it does not insulate a seller who actively conceals a known material defect or engages in fraudulent misrepresentation. Linda's deliberate non-disclosure of a known chronic water intrusion problem could constitute fraud or concealment, which is actionable regardless of the disclaimer. The RPDA's disclaimer option is not a license to commit fraud.
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Related Topics & Key Terms
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Related Concepts
Megan's Law requires states to make information about registered sex offenders available to the public. Some states require real estate agents to inform buyers about the availability of sex offender registries.
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.
More Mandated Disclosures Questions
A buyer asks a Georgia licensee to interpret a FEMA flood zone map and determine whether the property is at risk of flooding. The licensee has no specialized training in flood mapping or hydrology. How should the licensee handle this request?
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A buyer's agent discovers that a listed property contains an in-law suite that was built without permits and generates rental income for the seller. The agent also determines that the local zoning ordinance prohibits accessory dwelling units used as rental units in this residential zone. What are the buyer's agent's disclosure obligations?
A Georgia licensee representing the seller knows that the property experienced repeated sewage backups causing damage to the lower level. The seller instructs the licensee not to volunteer this information, arguing that the buyer can discover it through inspections. Under Georgia law, how should the licensee handle this situation?
Buyer's agent Tom learns from a neighbor that the property his client wants to purchase was the site of a suicide two years ago. The seller has not disclosed this information. What are Tom's obligations under Georgia law?
- → A Georgia licensee learns that a property has a known foundation crack that could affect structural integrity. The seller insists this is not a big deal and points out that a previous occupant died on the property, suggesting the licensee should focus on disclosing that instead. Under Georgia law, which statement correctly describes the licensee's disclosure obligations?
- → A Georgia licensee is preparing disclosures for a townhome sale. The property is located in an area where flood maps have recently been updated, the seller previously experienced minor water intrusion but considers it resolved, and certain environmental conditions are documented in public records. Which statement best describes the licensee's disclosure obligations?
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- → At a brokerage training session in Augusta, Avery is given a Georgia scenario. Example 12 is under review. The office is debating the claim that consumers should rely solely on the licensee for mold, engineering, or survey conclusions because referrals show weakness. It is comparing that claim with the rule that known material facts are not erased simply because the issue also appears in public records. The review topic is flood maps, changing conditions, historical seller knowledge, and the limits on a licensee’s interpretation of technical data. Which statement is correct?
- → Buyer's agent Mark discovers through public records that the property his clients want to purchase has an active code violation for an unpermitted addition. The listing doesn't mention this violation. What should Mark do under Georgia disclosure and representation requirements?
- → Broker Sarah discovers that a property she is listing has a history of flooding that occurred 3 years ago, which the seller failed to mention. The seller insists it's not relevant since repairs were made. Under Georgia law, what is Sarah's obligation regarding this information?
- → A buyer's agent is aware that a property sits in a FEMA-designated flood zone based on publicly available flood maps. The seller's disclosure form does not mention flooding. When the buyer asks the agent about potential flood risk, which approach best reflects the licensee's duty under Georgia law?
- → A seller informs his listing agent that a persistent condition in the neighborhood significantly disrupts normal use and enjoyment of the property. The seller asks whether this condition must be disclosed to prospective buyers. How should the agent advise the seller under Georgia disclosure requirements?
- → Seller Mike believes that failing to disclose a death on his property could result in the buyer suing him later. His agent tells him that Georgia law requires disclosure of all deaths to avoid future liability. Is this advice correct?
- → A buyer asks a Georgia licensee whether any registered sex offenders live near a property listed for sale. Under O.C.G.A. § 44-1-16, how should the licensee handle this inquiry?