Chapter 4.2.
Sale of completed private properties

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Bob, a property owner, is selling his house and knows about a significant defect in the foundation.
What is his obligation regarding this defect?

He must fix the defect before selling

He has no obligation to disclose as it's the buyer's responsibility to find defects

He must disclose the defect to potential buyers

He should lower the price instead of disclosing

The answer is C

The seller has an obligation to inform potential buyers of latent defects if known. Failure to disclose can lead to misrepresentation claims.

Bob, a property owner, is selling his house and knows about a significant defect in the foundation. What is his obligation regarding this defect?