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The title and the property cannot be legally transferred until the title defect is resolved. The titleholder must take care of all and any issues. For example, if there are tax liens on the property, the homeowner must pay off outstanding taxes before going through with the sale.
Failure to disclose can result in legal action, including breach of contract claims and fraud claims. The consequences of failure to disclose can be significant, including financial damages and even the termination of the transaction. In some cases, failure to disclose can result in criminal charges.
Further, any person - regardless of whether they own any interest in the subject property - is liable in fraud for a false statement, misstatement, failure to disclose, or incomplete disclosure.
A Seller's Disclosure is a legal document that requires sellers to provide previously undisclosed details about the property's condition that prospective buyers may find unfavorable. This document is also known as a property disclosure, and it's important for both those buying a house and for those selling a house.
Disclosing Home Defects: Sellers' Responsibilities If they forget or refuse, the sale is not valid. If a new home buyer discovers a material defect that the seller failed to disclose before the close of the sale, the law may give them the right to cancel the transaction.
A seller can be sued in some circumstances If a seller lies when making required disclosures about the house or if the seller is dishonest in their listing, there are certain circumstances in which the seller could potentially be sued.
Consequences For Failing To Disclose Issues With A Property The buyer could cancel the sale or even take legal action against the seller if an issue comes up after the sale closes.
A quitclaim deed is often used to cure a defect (a "cloud on the title") in the recorded history of a real estate title.