Question

Madison owns a smaller, older home she wants to sell to move into a more contemporary property. Although she doesn't know it and hasn't experienced any problems, the pipes in her plumbing system are seriously corroded and will soon need to be replaced. What are the disclosure responsibilities of her and her agent?

A) They should indicate problems may exist.
B) They should answer "unknown" to any questions about plumbing.
C) They should indicate that there are known plumbing problems.
D) They should note the fact that it's an older system and potential buyers should have it professionally examined.

Answer 1

Madison and her agent must disclose any known issues with the plumbing system of her home when selling it. If they are unaware of the corroded pipes, then no disclosure is required. However, if they are aware, it must be reported as a known plumbing problem to potential buyers to prevent possible legal issues after the sale.

Step-by-step explanation:

When it comes to the sale of a property, both the homeowner and their agent have specific disclosure responsibilities. Madison, the homeowner, despite not experiencing issues, must disclose any known problems with the property. In this scenario, if she is unaware of the plumbing problem, she is not required to disclose it. However, if the problem is known to her or her agent, they must reveal this as a known plumbing problem. Simply suggesting potential buyers to have the system examined may not be sufficient if the problem is known. It is also important to note that non-disclosure of known issues can lead to legal consequences after the sale is completed.

Furthermore, real estate laws often vary by state or region, but generally, sellers are obliged to disclose material facts about the property's condition to prospective buyers. Disclosure laws are intended to protect buyers from unknowingly purchasing a property with significant issues. Therefore, the best practice for Madison and her agent would be to honestly disclose any known issues with the plumbing, or if unsure, to recommend a professional inspection.