Chapter 13 - Residential Property Condition Disclosure Statement; Resi Prop Contional Disclaimer Statement Flashcards
What does the Residential Property Condition Disclosure Act of 1995 require?
- Seller of 1 or 2 residential dwelling units to complete the Residential Property Condition Disclosure Statement
- Must complete, sign, and date disclosure and deliver to purchaser as soon as practicable, but must be before an offer is accepted
- If seller becomes aware of a defect after delivery, but before seller accepts - must deliver amended disclosure
- Statements in doc are declarations, but not warranties
What does OREC have jurisdiction over the Residential Property Condition Disclosure Act?
OREC doesn’t have jurisdiction of the act, but over licensees who fail to comply with it
OREC develops and amends disclosures and disclaimer forms - making them available
What is the latest date a disclosure statement can have to be valid?
180 days, otherwise would need to be redone/signed
What happens if a seller becomes aware of a defect after delivery to the purchaser?
Sellermust promptly deliver disclosure statement or amended statement to the purchaser - must be in writing and signed/dated by seller
Offer to purchase shall be accepted only after purchaser has acknowledged receipt and confirmed offer to purchase
What is the seller not liable in terms of disclosed items?
Not liable for any erroneous, inaccurate, or omitted info supplied as a disclosure if:
1) error was from an approximation by seller provided:
a) accurate info was unknown by seller
b) approximation was identified as such
c) approximation was not used to circumvent disclosure
2) error was not actual knowledge of seller
3) delivery was required by seller to satisfy requirements of the act
What are the duties of a real estate licensee in disclaimers?
1) must obtain disclaimer/disclosure statement
2) obtain and make available to purchaser the disclaimer/disclosure statement
3) disclosure to the purchaser any defects known to licensee which are not in disclosure statement or amendment
4) if 1-3 aren’t done, shall be subject to disciplinary action
5) licensee has no duty to seller or purchaser to conduct independent inspection and no duty to independently verify the accuracy/completeness of seller statements
What are the possible remedies for disclaimer/disclosure items?
A) recover in civil action
1) failure to disclose
2) failure to disclose or amend by seller
3) failure to disclosue defects known by licensee
B) action to remedy actual damages and might include exemplary damages
C) action commenced within 2 years after transaction
D) prevailing party shall be allowed court costs and attorney fee
E) transfer of property may be invalidated
F) applies to, regulates, and determines rights, duties, obligations, and remedies
The act does not apply to:
1) transfers pursuant to court order
2) transfers to mortgagee by mortgagor or successor in interest who is in default
3) transfers by fiduciary who is not owner occupant in course of admin of decendent’s estate, guardianship, or trust
4) transfers from one co-owner to one or more co-owners
5) transfers made to spouse
6) transfers between spouses from decree of dissolution of merriage or legal separation
7) mergers and from subsidiary to parent or reverse
8) transfers or exchanges to or from gov entity
9) transfers of newly constructed dwellings
What’s the difference between the Disclaimer and Disclosure property statements?
Disclaimer is filled out by someone who never lived at the property, while disclosure is by someone who lived there at some point in time (so has actual knowledge)
