Difficulty: Medium

Average Score: 67%

Seller Marlie's home has termites, but she is unaware of them. Is she responsible for disclosing the presence of termites?

Rationale

No, she's only responsible for disclosing known material facts.

Sellers are legally obligated to disclose known material defects in their property. Since Marlie is unaware of the termites, she cannot disclose something she does not know, thus her responsibility is limited to known issues only.

A (No, she's only responsible for disclosing known material facts.) CORRECT

This choice correctly reflects the legal principle of disclosure, which requires sellers to inform buyers of material defects they are aware of. If Marlie has no knowledge of the termites, she cannot be held accountable for not disclosing them.

B (Yes, because all sellers are required to get a pest inspection before selling their property.) YOUR ANSWER

While conducting a pest inspection is a good practice, it is not a legal requirement in all jurisdictions. Additionally, sellers are only obligated to disclose defects they are aware of, so even if an inspection were done, if the seller is unaware of issues, they are not responsible for disclosure.

C (Yes, because she should have known that she had termites.) YOUR ANSWER

This choice implies that a seller is responsible for disclosing defects they should have known about, which is not universally applicable. The law typically requires actual knowledge of defects rather than speculation or assumed knowledge, thus Marlie would not be liable.

D (No, she is not required to disclose anything about the property.) YOUR ANSWER

This choice is incorrect as it suggests a blanket exemption from disclosure. Sellers are indeed required to disclose known material defects; failing to do so can lead to legal consequences if the buyer later discovers undisclosed issues.

Conclusion

In real estate transactions, sellers are bound by the law to disclose only those defects they are aware of. Marlie's ignorance of the termite issue absolves her of the responsibility to disclose it, affirming that her obligation lies solely with known material facts. This principle protects both sellers and buyers, ensuring informed transactions.

Related Questions

View all