Question

In mid-July, the Jefferson’s sell their home to the Trainers. The Jefferson’s know that their oil furnace doesn't work. The a. rule of caveat emptor, or "buyer beware," applies. b. Jefferson’s have a duty to disclose the problem. c. Jefferson’s don't have to disclose the problem because a broken furnace does not affect the value of a home. d. Jefferson’s have no obligation to disclose the problem.

Answer 1

Answer:

The correct option is B

Explanation:

The Jeffersons must disclose the problem to the Trainers before the deal is close. If the Jeffersons does not disclose this to the Trainers, and upon purchase the Trainers discovers it, then they are right to sue the Jeffersons. However, if the Jeffersons does the right thing and disclose the problem to the Trainers, any deal struck will consider the bad oil furnace.