Property Management
A Washington property management company manages a building with a known mold problem. The management company fails to disclose this to a prospective tenant. The tenant later becomes ill. The management company may be liable for:
AOnly the cost to remediate the mold
BPersonal injury damages, lease termination, and potentially punitive damages✓ Correct
CA refund of the security deposit only
DNo liability if mold is a naturally occurring condition
Explanation
Failure to disclose known material health hazards like mold to prospective tenants exposes the landlord/property manager to significant liability, including personal injury damages, breach of the warranty of habitability, and potentially fraud claims.
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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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