February 1st, 2016 at 7:26 pm
Answer: Mr. Seller should both disclose and repair any damage to the property caused by the rainstorm. The correct answer is C. First, the disclosure requirement for new material facts that a seller becomes aware of during escrow is set forth in paragraph 10A(6) of the RPA. Second, a seller must also make repairs because, under paragraph 11, the property must be maintained in substantially the same condition as on the day of contract acceptance. In rare instances, a seller may argue that his or her performance is excused by an act of God, but California law defines that as an “irresistible superhuman cause,” so an ordinary rainstorm is unlikely to be enough, depending on the circumstances. For more information, see C.A.R.’s new rainwater legal article available at http://www.car.org/legal/real-property-title/rainwater/? (password-protected for C.A.R. members only).
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