A buyer is interested in purchasing a residential property that was extensively renovated by the current seller. The seller disclosed that the renovations included adding a new basement apartment, which they completed themselves. According to REBBA 2002, what is a key disclosure responsibility for the seller regarding these renovations?

Question: A buyer is interested in purchasing a residential property that was extensively renovated by the current seller. The seller disclosed that the renovations included adding a new basement apartment, which they completed themselves. According to REBBA 2002, what is a key disclosure responsibility for the seller regarding these renovations?

Answer options:

• The seller is only required to disclose structural defects if they are aware of them and the buyer asks directly. ✅ The seller must disclose any known material facts, including whether permits were obtained for the basement apartment, even if the buyer does not specifically inquire.
• The seller is not obligated to disclose information about past renovations as long as the property passes a home inspection.
• The seller must provide a written builder's warranty for all self-completed renovations for at least one year after closing.

Correct answer: The seller must disclose any known material facts, including whether permits were obtained for the basement apartment, even if the buyer does not specifically inquire.

Explanation: Under REBBA 2002, sellers and their representatives have a duty to disclose material facts, which includes whether significant renovations like a basement apartment had the necessary permits. This is crucial for a buyer's informed decision and potential legal implications. Omission of such information could lead to future liabilities for the buyer.