Legal Disclosure of Defects

LEGAL DISCLOSURE OF DEFECTS

This Legal Disclosure of Defects (the "Disclosure") is made on this , by Disclosing Party: whose address is and Receiving Party: whose address is regarding the Real Property located at (the "Property").

RECITALS

WHEREAS, Disclosing Party is or was an owner, occupant, or custodian of the Property and has knowledge of the physical condition of the Property as of the effective date above; and

WHEREAS, Receiving Party has requested, and Disclosing Party has agreed, to provide a written disclosure of known defects, conditions, and material facts affecting the Property so that Receiving Party may evaluate the Property prior to any transfer of possession or title; and

WHEREAS, the parties intend that this Disclosure set forth the extent of Disclosing Party's knowledge of defects and the parties' respective rights and remedies regarding such defects.

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein and other good and valuable consideration, the receipt and sufficiency of which are acknowledged, the parties agree as follows:

1. DEFINITIONS

For purposes of this Disclosure: "Defect" means a physical condition of the Property that deviates from accepted industry standards or materially impairs use, habitability, structural integrity, or safety. "Material Defect" means a Defect that would have a substantial adverse effect on the value of the Property or significantly affects the health or safety of occupants. "Knowledge" or "known" means actual knowledge possessed by Disclosing Party after reasonable investigation and not constructive or imputed knowledge.

2. DISCLOSURE OF KNOWN DEFECTS

Disclosing Party states, to the best of its knowledge as of the effective date set forth above, the following defects, conditions, and material facts affecting the Property. Disclosing Party represents that the list below contains all Defects known to Disclosing Party that are material and relevant to the use or transfer of the Property unless expressly excluded in writing in this Disclosure.

Categories of Defects (check all categories that apply and describe items above):

Structural Electrical Plumbing HVAC Pest/Wood-Destroying Organisms Environmental/Hazardous Materials Other

3. REPRESENTATIONS AND WARRANTIES

3.1 Disclosing Party represents and warrants that, to the best of its actual knowledge after reasonable inquiry, the facts set forth in this Disclosure are true and complete as of the effective date. Disclosing Party does not warrant the absence of latent or concealed defects unknown to Disclosing Party. Disclosing Party further represents that it has no duty to disclose defects that are purely speculative or that have not manifested.

3.2 Receiving Party acknowledges that Disclosing Party has made no warranty, express or implied, regarding the long-term performance, habitability, or merchantability of the Property except as expressly set forth herein. Receiving Party expressly acknowledges that it has the opportunity to obtain inspections and independent assessments and that such inspections are the preferred means of confirming condition.

4. INSPECTION; ACKNOWLEDGMENT

Receiving Party acknowledges receipt of this Disclosure and confirms receipt of the information contained herein by checking the acknowledgement box and signing below. Receiving Party further acknowledges that acceptance of this Disclosure does not substitute for a professional inspection, and Receiving Party is encouraged to obtain inspections at Receiving Party's expense.

Receiving Party Acknowledgement: I acknowledge receipt of the Disclosure and the listed known defects.

5. REMEDIES; LIMITATIONS

5.1 If Disclosing Party knowingly omits to disclose a Material Defect with intent to deceive, Receiving Party's remedies shall include actual damages and any equitable remedies available under applicable law. Disclosing Party shall not be liable for defects that were not known or discoverable by Disclosing Party through reasonable inquiry.

5.2 Except in cases of intentional misrepresentation or fraud, neither party shall be entitled to consequential, incidental, or punitive damages arising solely from the matters disclosed herein. The parties' aggregate liability for breach of this Disclosure shall be limited to actual damages proven by the prevailing party.

6. INDEMNIFICATION

Disclosing Party agrees to indemnify, defend, and hold harmless Receiving Party from and against claims, liabilities, losses, costs, and expenses (including reasonable attorneys' fees) arising from any fraudulent or intentionally deceptive omission of Material Defects by Disclosing Party in this Disclosure. This indemnity does not extend to matters unknown to Disclosing Party or not required to be disclosed under applicable law.

7. NOTICES

All notices required or permitted to be given under this Disclosure shall be in writing and delivered by personal delivery, nationally recognized overnight courier, or certified mail, return receipt requested, to the addresses provided below or to such other address as either party may designate by notice in accordance with this section.

8. AMENDMENTS; WAIVER; COUNTERPARTS

8.1 This Disclosure may be amended only by a written instrument signed by both parties. No course of dealing or failure to insist upon strict performance shall constitute a waiver of any provision of this Disclosure.

8.2 This Disclosure may be executed in counterparts, each of which shall be deemed an original, and all of which together shall constitute one instrument. Signatures transmitted by electronic means shall be deemed original signatures for all purposes.

9. GOVERNING LAW; VENUE

This Disclosure shall be governed by and construed in accordance with the substantive laws of the State selected by the parties below, without regard to conflict of law principles. The parties agree that the state and federal courts located in the selected State shall have exclusive jurisdiction and venue over any dispute arising under this Disclosure.

10. ENTIRE AGREEMENT; SEVERABILITY

10.1 This Disclosure contains the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, representations, and understandings, whether oral or written.

10.2 If any provision of this Disclosure is held to be invalid, illegal, or unenforceable by a court of competent jurisdiction, the remainder of this Disclosure shall remain in full force and effect and shall be construed so as to effectuate the original intent of the parties as closely as possible.

11. MISCELLANEOUS

11.1 Survival. Sections relating to Representations and Warranties, Indemnification, Remedies, Governing Law, and any other provisions that by their nature should survive, shall survive the consummation of any transaction and any termination of this Disclosure.

11.2 Attorneys' Fees. In any proceeding to enforce this Disclosure, the prevailing party shall be entitled to recover its reasonable attorneys' fees and costs.

CERTIFICATION

Disclosing Party certifies under penalty of perjury under the laws governing the agreement that the information provided in this Disclosure is true and correct to the best of Disclosing Party's knowledge after reasonable inquiry and that the Disclosure contains all known Material Defects required to be disclosed under applicable law.

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