Question

A seller has no knowledge of any plumbing system problems on the property she is selling. In actuality, the pipes are seriously corroded and will need to be replaced soon. In the seller property condition disclosure, when responding to whether the seller has any knowledge of plumbing system problems, she should respond:

A. Yes
B. No
C. Unknown
D. The seller would not be required to respond to this question

Answer 1

The seller should answer 'No' on the seller's property condition disclosure regarding knowledge of plumbing system problems since she is not aware of the actual issue. The seller must update disclosures if new information is learned. To reassure buyers, sellers can provide warranties, allow inspections, or offer repairs.

Step-by-step explanation:

In the given scenario, the seller should respond with 'No' when completing the seller property condition disclosure in regard to the plumbing system. Since the seller has no actual knowledge of the problems with the plumbing, they are being truthful in stating they are unaware of any issues. However, if the seller were to become aware of the corrosion issue, they would then be obligated to inform potential buyers or amend the disclosure to reflect the new information about the plumbing system problems.

Regarding the ways a seller of goods can reassure a possible buyer facing imperfect information, they can provide warranties, allow for independent inspections, or offer to repair any discovered issues. By doing this, a seller not only establishes trust but also addresses any potential concerns a buyer might have due to a lack of full information about the product or property.