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.
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Notice?
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.
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.
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