Question

Bob decides to sell his home as termites are ruining its foundation. Jill purchases the property and does not know about the termite damage, which the inspector also does not find before purchase. After purchase, Jill finds out there is over $50,000 in termite damage. As Bob was aware of this issue and remained silent, he must pay $50,000 to Jill or fix the termite damage, even though the home is no longer his.
A. True
B. False

Answer 1

Answer: True

Explanation:

US State Laws protect home buyers by requiring that home sellers disclose any and everything in the property that may reduce the value of the property.

They require that any repairs that need to be made and any defects that it may have be disclosed before the property is sold. This is particularly true for Texas.

If a property is sold wilfully with knowledge of these defects then the party selling is liable for fraud as well as a civil suit that the seller may bring against them. Selling the house under the condition ' As Is ' does not void these obligations either.

So yes, as Bob was aware of this issue and remained silent, he must pay $50,000 to Jill or fix the termite damage, even though the home is no longer his.