Exemptions from disclosure, data in the MLS

George Stephens, CRB, and Charles J. "Chuck" Jacobus, JD | Advice columnists

Oct. 20, 2008

Dear George: I heard that some property owners are exempt from providing a seller's disclosure to potential buyers. Is this true?

Answer: Yes, there are exceptions. A seller of a single residential property is not required to provide a purchaser with a disclosure notice when the transfer is:

pursuant to a court order or foreclosure sale
by a trustee in bankruptcy
to a mortgagee by a mortgagor or successor in interest, or to a beneficiary of a deed of trust by a trustor or successor in interest
by a mortgagee or a beneficiary under a deed of trust who has acquired the real property at a sale conducted pursuant to a power of sale under a deed of trust or a sale pursuant to a court ordered foreclosure or has acquired the real property by a deed in lieu of foreclosure
by a fiduciary in the course of the administration of a decedent's estate, guardianship, conservatorship, or trust
from one co-owner to one or more other co-owners
made to a spouse or to a person or people in the line of consanguinity of one or more of the transferors
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
to or from any governmental entity
of a new residence of not more than one dwelling unit which has not previously been occupied for residential purposes
of real property where the value of any dwelling does not exceed 5% of the value of the property

Dear George: Our house has been listed with a REALTOR® for 150 days, and we're just discovered that she has been displaying false information about our home. She put "has known defects" in the MLS for the duration of the listing, and there are no defects with the house. Can I terminate the agreement based on
this information?

Answer: When you signed the listing agreement, did you review what the agent stated in the MLS listing about your home? If you weren't given a chance to review and authorize the information the listing agent put in the MLS, that could be cause for terminating the listing agreement. It could also be the basis for a complaint to the Texas Real Estate Commission. Talk to the broker of your agent's firm and ask him to what he will do to fix the problem.

E-mail a question to ask George & Chuck or fax it to 713-978-6684. The answers to questions in this column do not contain legal advice. If you wish to obtain legal advice, you should consult your own attorney.

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