Residential Real Estate Sales Disclosure Statement
OKLAHOMA - Title 60, Ch 16A, Sec. 831-839 - Residential Property
Condition Disclosure Act
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§ 831. Residential Property Condition Disclosure Act.
This act shall be known and may be cited as the "Residential Property
Condition Disclosure Act".
Added by Laws 1994, c. 198, § 1, eff. July 1, 1995.
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§ 832. Terms Defined.
As used in this act:
1. "Offer to purchase" means an offer to purchase property made by a
purchaser pursuant to a written contract;
2. "Seller" means one or more persons who are attempting to transfer
a possessory interest in property and who are either:
         a. represented
by a real estate licensee; or
         b. not represented
by a real estate licensee but receive a written request from the purchaser
to deliver or cause to be delivered a disclaimer statement or disclosure
statement as such terms are defined in paragraphs 11 and 12 of this section;
3. "Purchaser" means one or more persons who are attempting to acquire
a possessory interest in property;
4. "Real estate licensee" means a person licensed under the Oklahoma
Real Estate License Code;
5. "Transfer" means a sale or conveyance, exchange or option to purchase
by written instrument of a possessory interest in property for consideration;
6. "Person" means an individual, corporation, limited liability company,
partnership, association, trust or other legal entity or any combination
thereof;
7. "Contract" means a real estate purchase contract for the sale, conveyance
or exchange of property, option to purchase property, or a lease with an
option to purchase property;
8. "Property" means residential real property improved with not less
than one nor more than two dwelling units;
9. "Defect" means a condition, malfunction or problem that would have
a materially adverse effect on the monetary value of the property, or that
would impair the health or safety of future occupants of the property;
10. "Disclosure" means a written declaration required by this act based
on actual knowledge of the seller regarding certain physical conditions
of the property. A disclosure for purposes of this act is not a warranty,
implied or express, of any kind;
11. "Disclaimer statement" means the statement described in paragraph
1 of subsection A of Section 3 of this act; and
12. "Disclosure statement" means the statement described in paragraph
2 of subsection A of Section 3 of this act.
Historical Data
Added by Laws 1994, c. 198, § 2, eff. July 1, 1995.
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§ 833. Property Disclaimer or Disclosure Statement.
A. A seller of property located in this state shall deliver, or cause
to be delivered, to the purchaser of such property one of the following:
         1. A written
property disclaimer statement on a form established by rule by the Oklahoma
Real Estate Commission which states that the seller:
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a. has never occupied the property and makes no disclosures concerning
the condition of the property, and
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b. has no actual knowledge of any defect; or
         2. A written
property condition disclosure statement on a form established by rule by
the Oklahoma Real Estate Commission which shall include the information
set forth in subsection B of this section.
B. 1. The disclosure statement shall include an identification of items
and improvements which are included in the sale of the property and whether
such items or improvements are in normal working order. The disclosures
required shall also include a statement of whether the seller has actual
knowledge of defects or information in relation to the following:
         a. water and
sewer systems, including the source of household water, water treatment
systems, sprinkler systems, occurrence of water in the heating and air
conditioning ducts, water seepage or leakage, drainage or grading problems
and flood zone status,
         b. structural
systems, including the roof, walls, floors, foundation and any basement,
         c. plumbing,
electrical, heating and air conditioning systems,
         d. infestation
or damage of wood-destroying organisms,
         e. major fire
or tornado damage,
         f. land use matters,
         g. existence
of hazardous or regulated materials and other conditions having an environmental
impact,
         h. any other
defects known to the seller, and
         i. other matters
the Oklahoma Real Estate Commission deems appropriate.
2. The disclosure statement shall include the following notices to the
purchaser in bold and conspicuous type:
         a. "The information
and statements contained in this disclosure statement are declarations
and
         representations
of the seller and are not the representations of the real estate licensee.",
         b. "The information
contained in this disclosure statement is not intended to be a part of
any contract between the purchaser and the seller.", and
         c. "The declarations
and information contained in this disclosure statement are not warranties,
express or implied of any kind, and are not a substitute for any inspections
or warranties the purchaser may wish to obtain."
C. Either the disclaimer statement or the disclosure statement required
by this section must be completed, signed and dated by the seller. The
date of completion on either statement may not be more than one hundred
eighty (180) days prior to the date of receipt of the statement by the
purchaser.
D. The Oklahoma Real Estate Commission shall develop by rule the forms
for the residential property condition disclaimer and the residential property
condition disclosure statement. After development of the initial forms,
the Oklahoma Real Estate Commission may amend by rule the forms as is
necessary and appropriate.
Such forms shall be made available upon request irrespective of whether
the person requesting a disclaimer or disclosure form is represented by
a real estate licensee.
Historical Data
Added by Laws 1994, c. 198, § 3, eff. July 1, 1995.
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§ 834. Delivery of Disclaimer or Disclosure Statement.
A. A seller should deliver either the disclaimer statement or disclosure
statement to the purchaser as soon as practicable, but in any event it
shall be delivered before acceptance of an offer to purchase.
B. If the disclaimer statement or disclosure statement is delivered
to the purchaser after an offer to purchase has been made, the offer to
purchase shall be accepted only after the purchaser has acknowledged receipt
of the disclaimer statement or disclosure statement and confirmed the offer
to purchase.
C. If the seller becomes aware of a defect after delivery to the purchaser
of either a disclaimer statement or a disclosure statement, then the seller
shall promptly deliver to the purchaser either a disclosure statement or
an amended disclosure statement which discloses the newly discovered defect.
The disclosure statement or any amendment shall be in writing and shall
be signed and dated by the seller. However, if the required document is
delivered to the purchaser after an offer to purchase has been made, the
offer to purchase shall be accepted only after the purchaser has acknowledged
receipt of the required document and confirmed the offer to purchase.
D. The purchaser shall acknowledge in writing receipt of the disclaimer
statement or the disclosure statement and any amendment to the disclosure
statement. The purchaser shall sign and date any acknowledgment. Such acknowledgment
should accompany the offer to purchase the property. If
the purchaser confirms the offer to purchase, such confirmation shall
be in writing, shall be signed and dated by the purchaser and shall be
promptly delivered to the seller.
Historical Data
Added by Laws 1994, c. 198, § 4, eff. July 1, 1995.
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§ 835. Liability of Seller.
A. The seller shall not be liable for a defect or other condition in
the property if the existence of the defect or other condition in the property
was disclosed in the disclosure statement or any amendment delivered to
the purchaser before acceptance of the offer to purchase.
B. The seller shall not be liable for any erroneous, inaccurate or omitted
information supplied to the purchaser as a disclosure required by this
act if:
         1. The error,
inaccuracy or omission results from an approximation of information by
the seller, provided:
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a. accurate information was unknown to the seller at the time the disclosure
was made,
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b. the approximation was clearly identified as such and was reasonable
and based on the best information available to the seller, and
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c. the approximation was not used to circumvent the disclosure requirements
of this act;
         2. The error,
inaccuracy or omission was not within the actual knowledge of the seller;
or
         3. The disclosure
was based on information provided by public agencies and the seller reasonably
believed the information to be correct.
C. The delivery by a public agency of any information required to be
disclosed by the seller of the property shall satisfy the requirements
of this act as to the disclosures to which the information being furnished
is applicable.
Historical Data
Added by Laws 1994, c. 198, § 5, eff. July 1, 1995.
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§ 836. Duties of Real Estate Licensee Representing Seller
or Purchaser.
A. A real estate licensee representing a seller has the duty to obtain
from the seller a disclaimer statement or a disclosure statement and any
amendment required by this act and to make such statement available to
potential purchasers prior to acceptance of an offer to purchase.
B. A real estate licensee representing or assisting a purchaser has
the duty to obtain and make available to the purchaser a disclaimer statement
or a disclosure statement and any amendment required by this act prior
to the acceptance of an offer to purchase.
C. A real estate licensee has the duty to disclose to the purchaser
any defects in the property actually known to the licensee which are not
included in the disclosure statement or any amendment.
D. A real estate licensee who has complied with the requirements of
subsections A, B and C of this section, as applicable, shall have no further
duties to the seller or the purchaser regarding any disclosures required
under this act.
A real estate licensee who has not complied with the requirements of
subsections A, B and C of this section shall be subject to disciplinary
action by the Oklahoma Real Estate Commission as set forth in paragraph
6 of Section 858-208 of Title 59 of the Oklahoma Statutes.
E. A real estate licensee has no duty to the seller or the purchaser
to conduct an independent inspection of the property and has no duty to
independently verify the accuracy or completeness of any statement made
by the seller in the disclaimer statement or the disclosure statement and
any
amendment.
Historical Data
Added by Laws 1994, c. 198, § 6, eff. July 1, 1995.
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§ 837. Remedies - Recovery by Purchaser.
A. The purchaser may recover in a civil action only in the event of
any of the following:
         1. The failure
of the seller to provide to the purchaser a disclaimer statement or a disclosure
statement and any amendment prior to acceptance of an offer to purchase;
         2. The failure
of the seller to disclose in the disclosure statement or any amendment
provided to the purchaser a defect which was actually known to the seller
prior to acceptance of an offer to purchase; or
         3. The failure
of the real estate licensee to disclose to the purchaser any defects in
the property actually known to the real estate licensee prior to acceptance
of an offer to purchase and which were not included in the disclosure statement
or any amendment provided to the purchaser.
B. The sole and exclusive civil remedy for a failure under subsection
A of this section by the seller or the real estate licensee shall be an
action for actual damages, including the cost of repairing the defect,
suffered by the purchaser as a result of a defect existing in the property
as of the date of acceptance by the seller of an offer to purchase and
shall not include the remedy of exemplary damages.
C. Any action brought under this act shall be commenced within two (2)
years after the date of transfer of real property subject to this act.
D. In any civil action brought under this act, the prevailing party
shall be allowed court costs and a reasonable attorney fee to be set by
the court and to be collected as costs.
E. A transfer of a possessory interest in property subject to this act
may not be invalidated solely because of the failure of any person to comply
with this act.
F. This act applies to, regulates and determines rights, duties, obligations
and remedies of the seller, the real estate licensee and the purchaser
with respect to disclosure of defects in property.
Historical Data
Added by Laws 1994, c. 198, § 7, eff. July 1, 1995.
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§ 838. Applicability and Construction of Act.
A. This act does not apply to:
1. Transfers pursuant to court order, including, but not limited to,
transfers pursuant to a writ of execution, transfers by eminent domain
and transfers pursuant to an order for partition;
2. Transfers to a mortgagee by a mortgagor or successor in interest
who is in default, transfers by any foreclosure sale after default in an
obligation secured by a mortgage, transfers by a mortgagee's sale under
a power of sale after default in an obligation secured by any instrument
containing a
power of sale, or transfers by a mortgagee who has acquired the real
property at a sale conducted pursuant to a power of sale or a sale pursuant
to a decree of foreclosure or has acquired the real property by deed in
lieu of foreclosure;
3. Transfers by a fiduciary who is not an owner occupant of the subject
property in the course of the administration of a decedent's estate, guardianship,
conservatorship or trust;
4. Transfers from one co-owner to one or more other co-owners;
5. Transfers made to a spouse, or to the person or persons in the lineal
line of consanguinity of one or more of the owners;
6. Transfers between spouses resulting from a decree of dissolution
of marriage or a decree of legal separation or from a property settlement
agreement incidental to such a decree;
7. Transfers made pursuant to mergers and from a subsidiary to a parent
or the reverse;
8. Transfers or exchanges to or from any governmental entity; or
9. Transfers of a newly constructed, previously unoccupied dwelling.
B. Nothing in this act shall be construed to alter or change the requirements
of Section 858-513 of Title 59 of the Oklahoma Statutes, regarding psychologically
impacted real estate.
Historical Data
Added by Laws 1994, c. 198, § 8, eff. July 1, 1995.
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§ 839. Form of Notices or Acknowledgments.
Any notices or acknowledgments required under this act need not be sworn
to, verified or acknowledged.
Historical Data
Added by Laws 1994, c. 198, § 9, eff. July 1, 1995.
