Contracts

An Alaska builder/developer who sells new homes from a model home may NOT be required to provide a seller's disclosure statement because:

ANew homes have no material defects
BSome states and transactions exempt new construction from standard disclosure requirements✓ Correct
CThe builder's warranty substitutes for disclosure
DThe purchase agreement for new construction is legally exempt

Explanation

In some jurisdictions and circumstances, new construction sales may be handled differently from resale transactions regarding seller disclosure requirements. However, sellers (including builders) still must disclose known material defects and conditions affecting the property.

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