Seller Disclosures, Environmental Addenda Flashcards
What year triggers the required lead based paint disclosure?
1978
On the TREC 28-2 Environmental Assessment, Threatened or Endangered Species, and Wetlands Addendum, assessments are done at the ______________ expense.
Buyer’s
A buyer is most likely to request an assessment on the TREC Environmental Assessment, Threatened or Endangered Species, and Wetlands Addendum for which of the following issues?
Environment, Threatened or Endangered Species, and Wetlands
Disclosure documents are given to the seller to fill out by the licensee that reveal negative conditions on the property, including:
structural damages
the presence of lead-based paint
an environmental assessment.
Documents needed to make these disclosures and/or addenda include the OP-H, the OP-L, and the TREC No. 28-2.
The TREC RSC 2 is used to disclose any additional fee that a licensee takes
including a finder’s fee or a fee for collection information for a Residential Service Company.
OP-H Seller’s Disclosure of Property Condition used
to help the seller meet the Texas statute concerning the property condition and the seller’s requirement to disclose all he/she knows about the property condition.
The licensee gives this form to the seller at the time of obtaining the listing on the property. The seller is not required to fill this specific form out but they are required to provide written disclosure to the buyers so this is the form that is typically used
OP-H Seller’s Disclosure of Property Condition
It is a “Seller’s” disclosure not a license holder’s disclosure.
The seller’s completion of this form helps the seller to remember all the things in the property and whether they are working properly or not. The license holder should not help the seller fill in the form
Upon completing this form, the seller will give it to his or her licensee and the licensee will make the form available to all buyers who express interest in the property. In some areas, this completed form can be uploaded to the Multiple Listing Service (MLS)
OP-H Seller’s Disclosure of Property Condition
OP-H Seller’s Disclosure of Property Condition. The buyer should…..
read through this document before making an offer on the property and should voice any concerns by asking the licensee representing the seller for additional information. Even if the buyer likes the home and the seller’s disclosure acceptable, he or she still should have a home inspector write a report on the property to make sure that nothing else is wrong with the improvements that the seller was not aware.
The following is a list of the situations that do not require the seller to fill out Disclosure of Property Condition Form. However, he or she still must tell what is known about the negative condition of the property.
When ownership is transferred by a court order or a foreclosure sale
When the real estate is taken by a trustee in a bankruptcy
When the property comes out of a trust, such as a Release of Lien by a lender or through a deed to trust for the benefit of a beneficiary of that trust
When the lender acquires the property through a power of sale clause in a deed of trust or a court-ordered foreclosure or by a deed in lieu of foreclosure
When the property is handled by an executor of an estate or a guardian
When the property interest is transferred from one co-owner to the other co-owner(s)
When transfer is to a spouse or close relative
When transfer is the result of a divorce
When transfer is to or from a governmental entity
When a builder sells a new home for the first time
When the transfer does not exceed 5% of the value of the property
Lead Based Paint Addendum OP-L
This is the form that should be filled out to inform the buyer that the house probably has lead-based paint on the walls.
Lead Based Paint Addendum OP-L Paragraph A
informs the buyer of the potential dangers of lead and the health problems it could cause. The year mentioned is 1978. It was in that year that the government discontinued allowing lead to be added to paint to avoid any possible dangers to health. This paragraph does suggest that buyer have an inspection to detect the presence of lead in the paint; however, most buyers just assume that lead was in the paint applied to the walls.
Lead Based Paint Addendum OP-L Paragraph B
the licensee will check off line 1(a) or 1(b) to indicate the seller’s knowledge of lead-based paint. The seller possibly had an inspection performed when he or she bought the property and he or she knows about the presence of lead.
Line 1(a) would be checked off and then how the knowledge was obtained would be entered, such as, “Home Inspection Report dated May 15, 1985.”
If the seller has no knowledge, line 1(b) would be checked.
Lead Based Paint Addendum OP-L Paragraph C
the buyer will make a choice of whether he or she will accept the property in its current condition or whether he or she will have an inspection performed within the 10 days of the effective date of the contract.
