Contracts

A NJ seller's disclosure form revealing a history of termite damage was provided to the buyer before signing. The buyer signed the contract acknowledging receipt. If termite damage later causes significant repair costs, the seller is:

AFully liable regardless of disclosure
BGenerally protected from liability for disclosed conditions that the buyer accepted with knowledge✓ Correct
CStill liable for undisclosed consequential damages
DLiable only if the buyer did not have an inspection

Explanation

When a seller properly discloses a known condition and the buyer accepts the property with knowledge of that condition, the seller generally has limited liability for that disclosed defect. Proper disclosure is a key protection for sellers.

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