Under what circumstance is a Seller's Disclosure Notice not required?

Study for the Texas Promulgated Contracts Exam. Gain understanding with detailed explanations and various question formats. Prepare effectively and ace your test!

A Seller's Disclosure Notice is not required when the property being sold is a previously unoccupied new home. This is because the Texas Property Code outlines specific exemptions for new homes that have not been previously lived in. The rationale behind this is that, as new constructions, these homes do not have a history of occupancy that could affect the seller's knowledge regarding the condition of the property.

In contrast, other scenarios—like when the property is sold to an investor, has an out-of-state owner, or is sold "as is"—do not automatically exempt the requirement for a Seller's Disclosure Notice. Investors can still benefit from the disclosures, as they are often buying a property to rent or resell and need to be aware of any potential issues. Similarly, an out-of-state owner is still obligated to provide the necessary disclosures to ensure that the buyer is fully informed about the property's condition. Selling a property "as is" does not negate the importance of the disclosure, as it is meant to inform the buyer of the existing property conditions, rather than warranting that no issues exist.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy