Contracts
In Alabama, the seller's disclosure of known material defects must occur before:
AThe property is placed on the MLS
BThe buyer makes an offer, or upon receipt of an offer if not yet disclosed✓ Correct
CThe home inspection
DClosing only
Explanation
Sellers should provide known material defect disclosures to prospective buyers before or at the time an offer is made, allowing buyers to make fully informed decisions.
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Key Terms to Know
Earnest Money
A deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
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