Seller Disclosure Exemptions

There are eleven (11) Sellers who are exempt from the requirements of section 5.008 of the Texas Property Code. They are:

1. Seller of residential property consisting of more than one dwelling unit.

2. New home or builder exemption

3-4. Trustee or executor of an estate exemption

3. By a Trustee in a bankruptcy case
4. By an executor of a will selling the Property

5. Foreclosure Sale

6. Relocation Company, unless the Relocation Company is the Seller.
7. To or from any governmental entity
8. From one co-owner to one or more other co-owners

9. Made to a spouse or to a person or persons in the lineal line of consanguinity of one or more of the transfers

10. Between spouses resulting from a decree of dissolution of marriage or a decree of legal separation or from a property settlement agreement to such a decree.

11. Of real property where the value of any dwelling does not exceed five (5%) percent of the value of the property.

Now, are you ready to test your knowledge on Seller Disclosure Notice?
Just answer the following questions and if you wish to check your answers to see whether or not they are correct, click on the link provided.

To get more questions like these in many different areas of real estate and financing please visit http://www.texasfivestarrealty.com/Test_Your_Knowledge.asp .
 

1.            True or False:                     Sellers who have never lived in the house don’t need to
provide the Seller’s Disclosure Notice to a Buyer.

2.            True or False:                     If a Seller enters into a contract and does not provide a
                Buyer the Seller’s Disclosure Notice the Seller is automatically in default.

3.            True or False:                     The Seller is selling both sides of a duplex in which he
lives in one side.  The Seller is only legally required to fill out the Seller’s
Disclosure Notice for the side he lives in.

4.            True or False:                     The Seller has new information from an inspection
report provided by a Buyer who terminated their contract.  The Seller is
now required by the Property Code to update his Seller’s Disclosure Notice.

5.            All of the following Sellers are exempt from providing the Seller’s
                Disclosure Notice to a Buyer under the provisions of the Property Code except for.

                A.  A trustee in a bankruptcy case.
                B.  A spouse selling to the other spouse in a divorce settlement.
                C.  An executor of a will selling the Property.
                D.  An heir who has inherited the Property he has never seen and has no
                      knowledge of the condition of the Property and is now selling it.
                E.   All of the above Sellers are exempt.

6.           Which of the following does the law required to be disclosed?
                A.  A death on the Property by natural causes.
                B.  A death on the Property by suicide.
                C.   A death on the Property caused by a faulty stair railing.
                D.   A violent death in the driveway but not in the house itself.
                E.   All of these deaths have to be disclosed.
                F.   None of these deaths have to be disclosed
                G.   Only C and D have to be disclosed.

7.            Which of the following deaths should be disclosed regardless of
the requirements of the law but due to prudent business practices?

                A.  A death on the Property by natural causes.
B.  A death on the Property by suicide.
C.   A death on the Property caused by a faulty stair railing.
D.   A violent death in the driveway but not in the house itself.
E.   All of these deaths have to be disclosed.
F.   None of these deaths have to be disclosed
G.   Only C and D have to be disclosed.

8.            True or False:                     There are ten Sellers who are exempt from the
                requirements of section 5.007 of the Property Code.

9.            True or False:                     If the Seller is exempt from the requirements of the
                Property Code then that Seller is exempt from disclosing even known defects.

10.          True or False                      If a Person died of AIDS living in the house then that
                has to be disclosed including that he died of AIDS.

11.          True or False:                     A Seller is required to disclose to a Buyer the amount of
                square footage of the house and the source of that data.

12.          True or False:                     Because our CMA’s are based on price per square feet
                value then the Buyer is protected if the Property ends up with less square feet
                than stated in MLS.

13.          True or False:                     If the Seller in completing a Seller’s Disclosure Notice is
not sure of some of the terminology then the agent should explain the terminology
so the Seller can accurately complete the notice.

14.          True or False:                     All repairs made by a Seller must be disclosed even
                though the defect has been repaired and is no longer a defect.

15.          True or False:                     Under the Property Code the Seller must disclose if
                they have made any insurance claims on the Property.

16.          Which of the following is most true under the Property Code?

                A.  Seller must disclose any inspections he has received in the past 4 years.
                B. Seller must provide the Buyer with copies of any inspections from the past 4 years.
                C.  Seller must provide any appraisals from the past 4 years.
                D. The Seller’s Disclosure Notice must reflect any information the Seller has
                      from any inspections from which he has received information.