“In this unique scenario, do I need to disclose the possibility of faulty electrical outlets?”
December 20, 2023
*Please note: Any questions regarding Legal Hotline Spotlights should be submitted via the Virginia REALTORS® Legal Hotline. Our attorneys are unable to respond to questions through our comments section.
Q: I’m representing a seller who only recently inherited the property from his now-deceased mother. My client told me his mother used to complain of the electrical outlets in the upstairs bedrooms not working properly and being “faulty.” Since taking possession of the property, my client has not noticed any such problems with the electrical outlets; he says they seem to work fine. Do I need to disclose the possibility of faulty electrical outlets?
A: In general, erring on the side of disclosure is safest. However, in this case, without more information or evidence of malfunctioning electrical outlets, there is likely no duty to disclose. The Virginia Code says that licensees must disclose “all material adverse facts pertaining to the physical condition of the property which are actually known by the licensee.”
In this case, faulty electrical outlets would be a material adverse fact pertaining to the physical condition of the property, but it is not actually known to the licensee or seller whether such a defect is present. It is possible there was never actually anything wrong with the outlets. It is also possible the mother had the electrical outlets repaired at some point without her son’s knowledge. Without actual knowledge of a material adverse fact pertaining to the physical condition of the property, there is not a duty to disclose.
What is the Legal Hotline?
The Legal Hotline is a member benefit that has been supporting members for over 25 years. Our team of lawyers answers your important questions about real estate transactions quickly and accurately (usually within three business hours!).
Here are some tips to help make the Legal Hotline work for you!
You might also like…
“How can I find out what changes are being made to Standard Forms for the upcoming year?
By Santiago Montalvo - December 19, 2024
*Please note: Any questions regarding Legal Hotline Spotlights should be submitted via the Virginia REALTORS® Legal Hotline. Our attorneys are unable to respond to questions through our comments section. Q:… Read More
“What happens if a purchaser receives a Resale Disclosure Certificate in improper form?”
By Sean Olk - December 17, 2024
*Please note: Any questions regarding Legal Hotline Spotlights should be submitted via the Virginia REALTORS® Legal Hotline. Our attorneys are unable to respond to questions through our comments section. Q:… Read More
Corporate Transparency Act on Hold
By Jon Haley - December 16, 2024
UPDATE: The Fifth Circuit Court of Appeals has granted the U.S. government’s request to lift the temporary nationwide injunction that stopped the Corporate Transparency Act (“CTA”) from taking… Read More