Texas Real Estate Sales Agent ExamProperty DisclosuresHard
A seller's property has a history of water damage from a burst pipe, which was fully repaired and remediated by a licensed professional two years ago. On the Seller's Disclosure Notice, under the 'Water Penetration' section, how should the seller address this past event?
- AThey are only required to disclose if the damage was structural or involved mold.
- BThey can mark 'No' for water penetration, as it was fully repaired and is no longer an issue.
- CThe repair company's warranty absolves the seller from disclosing past issues.
- DThey must disclose the past water penetration and the details of the repair and remediation.
Show answer & explanationAnswer & explanation
Correct answer: D. They must disclose the past water penetration and the details of the repair and remediation.
Even if fully repaired and remediated, a history of water damage is a material fact that a buyer would want to know. The Seller's Disclosure Notice requires disclosure of past events, not just current conditions. Full disclosure includes the nature of the damage and the steps taken to resolve it.
Why the other options are wrong
- A. Any significant water penetration is generally considered a material fact, regardless of whether it was structural or involved mold.
- B. Marking 'No' would be a misrepresentation, as the event did occur and is a known material fact.
- C. A repair warranty does not negate the seller's duty to disclose past material facts about the property's condition.
Disclosure of Past Repairs
Sellers must disclose past material defects and repairs, even if fully corrected, as this information is relevant to a buyer's decision.
- Disclosure applies to known 'conditions' and 'features'.
- Past damage, even if repaired, is a material fact.
- Provides transparency to the buyer.
- Includes details of the repair and remediation.
Memory trick: Old problems, new repairs, still show all the cares.