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Buyer Beware (Caveat Emptor)
Tennessee is a “Buyer Beware” state, which places the legal burden on the purchaser to exercise due diligence, conduct independent inspections, and discover flaws before final settlement.
Exceptions:
- Active Concealment: A seller cannot actively conceal a known defect from a buyer or inspector (Van Deusen v. Snead, (1994)).
- Fraudulent Misrepresentation: Sellers cannot knowingly provide false statements about the material facts of a property (Van Deusen v. Snead, (1994)).
- Diverting the Purchaser: Sellers must not engage in conduct that intentionally discourages the purchaser from making prudent inquiries (Armentrout v. French (1979)).
- Statutory Exceptions: Sellers must affirmatively disclose specific legal encumbrances, localized hazards, and zoning issues mandated by the Virginia Residential Property Disclosure Act.
Required Disclosures (11)
1.) Building Code or Zoning Violation Disclosure: Sellers must provide this form if a local government has notified them of a building code or zoning violation that remains unsolved (§ 55.1-706). This form is not required if no violation exists.
2.) Disclosure Statement for Certain New Dwellings: This form is only required for new home builds or properties in Planning District 15 (§ 55-518.B). Builders must check a box and attach a written explanation only if any known material building code violations exist.
3.) HOA / Condominium Resale Disclosure: If the property is part of a community association, the seller must provide a formal resale certificate detailing the association’s governing documents, fees, and any unit violations. These forms are provided directly by HOA / Condo associations.
4.) Lead-Based Paint Disclosure: If the property was constructed before 1978, the seller must disclose known lead hazards and provide the buyer with a federally approved safety pamphlet (42 U.S. Code § 4852d).
5.) Lis Pendens Disclosure: The seller must submit this form to the buyer if the property is subject to a pending legal action (§ 55.1-706.1). It ensures buyers are aware of legal encumbrances affecting the title or ownership transfer.
6.) Methamphetamine Manufacturing: This disclosure is required if the seller is aware that the property was previously used to manufacture methamphetamine (§ 55.1-708). It is unnecessary if the home has already been remediated to meet strict state guidelines.
7.) Military Air Installation: Sellers must provide this form if the property resides within a designated military air installation zone (§ 55.1-704). It alerts buyers to potential excessive aircraft noise and potentially dangerous areas.
8.) Repetitive Risk Loss Disclosure: Sellers must fill out this form if the property is classified as a repetitive risk loss structure (§ 55.1-708.2). It indicates that the property has suffered two or more flood-related damage events covered by the National Flood Insurance Program.
9.) Residential Property Disclosure Statement: This mandatory form acts as a notice to buyers to exercise due diligence and conduct inspections (§ 55.1-700). It lists categories, such as property condition, lot lines, and flood areas, where the owner makes no representations.
10.) Septic System Operating Permits Validity: This affirmative disclosure is only mandatory if the property’s septic system is subject to specific health department waiters or maintenance requirements (§ 32.1-164.1:1).
11.) Stormwater Management Facilities: Sellers must provide this form if the property contains a privately owned stormwater management facility (§ 55.1-708.1). It informs buyers about long-term maintenance responsibilities and routine inspection requirements for the facility.
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