A new disclosure will be required for any and all residential contracts occurring on or after July 1, 2015.
Sellers will now be required to disclose the existence of any known sinkhole on the property. For those of you curious, the statute defines a “sinkhole” as “a subterranean void created by the dissolution of limestone or dolostone strata resulting from groundwater erosion, causing a surface subsidence of soil, sediment, or rock” AND “is indicated through the contour lines on the property’s recorded plat map”. — Tenn. Code Ann. 66-5-212(c).
The goal of this new legislation is to take the liability for sinkholes away from the agent and place it on the owners of the property.
The owners are in a much better position than the Realtors to know whether their property has a sinkhole.
If you have a residential property listed which did not gone under contract by July 1, 2015, you have two options:
Option 1 – you can have your seller complete a new disclosure, disclaimer, or exemption. The TAR forms were updated and available on July 1st.
Option 2 – remember that you have to counter any offer received if the seller has knowledge of a sinkhole as of July 1st.
TAR has made changes and published the following forms on July 1st for your use:
RF201 – Tennessee Residential Property Condition Disclosure
RF203 – Tennessee Residential Property Condition Exemption Notification
RF204 – Tennessee Residential Property Condition Disclaimer Statement
Source: TAR Digest (view original article)