THE SELLER OF PROPERTY FOR
For residential
property of not less than one nor more than four dwelling units, prior to
signing a Real Estate Sales Contract or certain other Agreements, the Seller
must provide detailed information concerning the condition of the property,
whether or not a Real Estate Agent is involved in the sale. Compliance by a Seller is mandatory.
If a Real Estate Agent is
involved in the transaction, the law requires only that the Real Estate Agent
inform both the Seller and the Buyer of their responsibilities, rights and
obligations under the Law.
The Disclosure
Statement is not a warranty and is not intended to be a substitute for an
inspection of
the property.
The Disclosure is provided
for the Buyer’s exclusive use and may not be relied upon by a Buyer in a
subsequent transfer. The Disclosure
from the Seller must be given in good faith.
The Seller is not required to
undertake independent inspections or investigations of the property in order to
complete the Disclosure. The Buyer may wish to obtain an Inspection.
The information in the
Disclosure is provided by the Seller and not the Real Estate Agent.
The Disclosure may be waived
by a Disclaimer, but only if the Buyer agrees.
Failure to provide a
Disclaimer will not permit a Buyer to terminate a Real Estate Sales Contract;
however, the Buyer may have other remedies.
The Seller is not liable for
an error or omission in the Disclosure if:
(1) The error or omission was not within the actual knowledge of the Seller
or was based on information provided by
a public agency, or the report of an Inspector such as a Professional Home
Inspector;
(2) The Seller was not
grossly negligent in obtaining the information.
It the Seller subsequently
(but before the closing) determines that the information in the Disclosure was inaccurate, the Seller must disclose the inaccuracy to the
Buyer. In addition, If
there are any material changes in the physical condition of the property
between the time the contract is executed and the closing, then an updated
Disclosure is required.
At the time of closing, the
Seller will be required to provide a statement that no physical changes have
occurred in the condition of the property between the time of the execution of
the Disclosure and the date of closing.
If at the time the Disclosure
is made, the Seller does not have information
concerning a certain matter, the seller may state that such information is
unknown, or use an approximation of the information, but this provision may not
be used for the purpose of evading the purpose of the Law.
The Real Estate Agent must
inform potential Buyers of adverse facts concerning the property known to
him/her, and can be held liable for intentional misrepresentation or defrauding
a Buyer.
Matters such as a person
being with HIV or other disease which has been determined by medical evidence
to be highly unlikely to be transmitted through occupancy of a residence, or
the occurrence at the residence of a homicide, felony or suicide, need not be
disclosed.
The Buyer has a cause of
action for defects existing at the time of the execution of the Contract,
subject to certain limitations. Any
action must be brought within one year.
No cause of action may be
instituted against a closing agent or attorney for failure of a Seller to
provide a Disclosure or Disclaimer.
Failure of a Seller to provide
the Disclosure or Disclaimer does not affect the status of the title.
The Law does
not affect other remedies otherwise available.
Certain
transactions are excluded from the requirements. ( see the