LLR updated Residential Property Condition Disclosure Statement to account for license law defining “material adverse facts” which must be disclosed even if seller’s refuse to disclose. Always best for listing brokerages to strongly persuade seller’s to disclose on the seller disclosure. SCR listing agreements require seller disclosure.
The new license law carves down the broad “material fact” which case law defined as basically anything that might impact a consumer’s decision making, which is very broad.
Case law required real estate licensees to disclose material facts. That was a huge broad duty.
Material adverse facts are limited by statute.
(16) ‘Material adverse fact’ means:
(a) a condition or occurrence that is generally recognized as:
(i) significantly and adversely affecting the value of the real estate;
(ii) significantly reducing the structural integrity of improvements to real estate; or
(iii) presenting a significant health risk to occupants of the real estate; or
(b) information that indicates that a party to a transaction is not able to or does not intend to meet an obligation under a contract or agreement made concerning the transaction.