Residential
Disclosure Laws >
Defects Must Be Revealed
When
it comes to residential property in Oklahoma, the Oklahoma Residential
Property Condition Disclosure Act (60 O.S. §§ 833) states that a seller
of residential property (single family or duplex) located in
Oklahoma shall deliver to the prospective purchaser a written property
disclosure statement which shall include an identification of items and
improvements included in the sale of the property and whether such items
or improvements are in normal working order.
However,
if the residential property was held for investment purposes (owner did
not maintain a residence) a written property disclaimer statement can be
substituted for the disclosure statement.
In the disclaimer the property owner affirms that the seller of the
property both:
a) has never occupied the property and makes no
disclosures concerning the condition of the property, and
b) has no actual knowledge of any defect(s)
For residential property, a
seller is not liable for a defect once it has been disclosed in the
disclosure statement. Therefore,
the Residential Disclosure laws make it important to reveal all material
defects when you are selling a home. It is important to be absolutely
candid with your Real Estate Associate and all buyers about the condition
of the property.
It is unlikely that defects will go undetected, because most purchasers of
residential property obtain a home inspection before they are
contractually obliged to complete the purchase. Even if the problems do
not surface before the closing, your liability does not end after the
closing for any defects you may have forgotten to report. Buyers almost
never accept misrepresentation graciously, but they can usually deal with
a house that is short of perfection if they know what they are getting
into from the beginning. When selling your home, your real estate agent
will provide you with a seller's disclosure form. Protect yourself by
clearly describing any material defects prior to the sale.
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Commercial / Investment Disclosure Laws >
At Common Law
Caveat
emptor is ancient Roman for Let the Buyer beware! Regardless of what you
may have herd about disclosures, this term still applies when purchasing
your commercial property or residential investment property.
In
general, if a defect is observable, it need not be disclosed.
If
a defect is hidden, it should be disclosed.
If
a prospective purchaser asks a question the seller must be truthful in
answering the question.
IF your are purchasing industrial or commercial property, especially
those with tenants in the chemical or automotive fields, be sure to
consider condicting an All
Appropriate Inquiries (AAI) or Phase I Environmental Assessments.
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