Why is a Seller's Disclosure not required for a Commercial Property.
Great info again, Dawn!
As always, very informative!!
Eloquent as always! Thank you for our knowledge & helping us with our business!
The important thing here is to not give the buyer another option period. Advise the buyer of the problem and the fix, but don't give them an easy termination route by modifying the disclosure notice itself.
I learn a different nuance every time from you. Thanks always.
As always these are great and I look forward to every video you send, such a great learning tool and a way to keep you learning. Thank you for doing these!
Timely topic and excellent presentation.
Section 5.008 of the Texas Property Code is the statute that created the requirement for the Seller's Disclosure Notice. It covers residential property only. Common Law (or case law), however, requires disclosure by a seller of defects he/she knows or should have known existed on a property (commercial or residential) to a buyer. There is no form for this disclosure, nor does case law require disclosure be in writing. Clearly, it is best practice to put all disclosures in writing.
What happens when you receive the SD and it is not completely filled out? Missing information or nothing checked. You have checked the box ⌧ has received SD on the 1-4 but later realize it was not completed. Can you request a seller to complete/revise the SD and provide? How does this affect the contract?
The answer is "no". The statute covering the SDN only provides the single remedy of termination of the contract by buyer for seller's failure to provide the SDN before execution of the contract. The statute doesn't provide for damages for failure to disclose something. And, remember the statutory SDN covers much less than the one we commonly use. Therefore, Seller may have completed what is required by the SDN, but fall short of what he would be required to disclose under common (or case) law. The only ramification for failure to disclose is under case law. If Buyer is damaged by the Seller's misrepresentation (which can be by omission), and Buyer can prove he relied on Seller's misrepresentation, then Buyer can sue the Seller for damages.