OklahOma residential prOperty cOnditiOn disclOsure act

OKLAHOMA

RESIDENTIAL

PROPERTY

CONDITION

DISCLOSURE

ACT

(Title 60, O.S. Section 831 et seq.)

Effective July 1, 1995

(amended as of January 1, 2008)

sale under a power of sale after default in an obliga-

tion secured by any instrument containing a power

of sale, or transfers by a mortgagee who has ac-

quired the real property at a sale conducted pursu-

ant to a power of sale or a sale pursuant to a decree

of foreclosure or has acquired the real property by

deed in lieu of foreclosure;

3. Transfers by a fiduciary who is not an owner

occupant of the subject property in the course of the

administration of a decedent’s estate, guardianship,

conservatorship or trust;

4. Transfers from one co-owner to one or more

other co-owners;

5. Transfers made to a spouse, or to the person

or persons in the lineal line of consanguinity of one

or more of the owners;

6. Transfers between spouses resulting from a

decree of dissolution of marriage or a decree of legal

separation or from a property settlement agreement

incidental to such a decree;

7. Transfers made pursuant to mergers and from

a subsidiary to a parent or the reverse;

8. Transfers or exchanges to or from any gov-

ernmental entity; or

9. Transfers of a newly constructed, previously

unoccupied dwelling.

B. Nothing in this act shall be construed to alter or

change the requirements of Section 858-513 of Title

59 of the Oklahoma Statutes, regarding psychologi-

cally impacted real estate.

Section 839, Notices and acknowledgements

Any notices or acknowledgements required under

this act need not be sworn to, verified or acknowl-

edged.

Section 837. Remedies

A. The purchaser may recover in a civil action

only in the event of any of the following:

1. The failure of the seller to provide to the pur-

chaser a disclaimer statement or a disclosure state-

ment and any amendment prior to acceptance of an

offer to purchase;

2. The failure of the seller to disclose in the dis-

closure statement or any amendment provided to

the purchaser a defect which was actually known to

the seller prior to acceptance of an offer to purchase;

3. The failure of the real estate licensee to dis-

close to the purchaser any defects in the property

actually known to the real estate licensee prior to ac-

ceptance of an offer to purchase and which were not

included in the disclosure statement or any amend-

ment provided to the purchaser.

B. The sole and exclusive civil remedy at com-

mon law or otherwise for a failure under subsec-

tion A of this section by the seller or the real estate

licensee shall be an action for actual damages, in-

cluding the cost of repairing the defect suffered by

the purchaser as a result of a defect existing in the

property as of the date of acceptance by the seller

of an offer to purchase and shall not include the rem-

edy of exemplary damages.

C. Any action brought under this act shall be

commenced within two (2) years after the date of

transfer of real property subject to this act.

D. In any civil action brought under this act, the

prevailing party shall be allowed court costs and a

reasonable attorney fee to be set by the court and to

be collected as costs.

E. A transfer of a possessory interest in prop-

erty subject to this act may not be invalidated solely

because of the failure of any person to comply with

this act.

F. This act applies to, regulates and determines

rights, duties, obligations and remedies at common

law or otherwise of the seller, the real estate licens-

ee and the purchaser with respect to disclosure of

defects in property and supplants and abrogates all

common law liability, rights, duties, obligations and

remedies therefore.

Section 838, Exemptions from application of act

A. This act does not apply to:

1. Transfers pursuant to court order, including,

but not limited to, transfers pursuant to a writ of ex-

ecution, transfers by eminent domain and transfers

pursuant to an order for partition;

2. Transfers to a mortgagee by a mortgagor or

successor in interest who is in default, transfers by

any foreclosure sale after default in an obligation

secured by a mortgage, transfers by a mortgagee’s

b. the approximation was clearly identified

as such and was reasonable and based

on the best information available to the

seller, and

c. the approximation was not used to cir-

cumvent the disclosure requirements of

this act;

2. The error, inaccuracy or omission was not

within the actual knowledge of the seller; or

3. The disclosure was based on information pro-

vided by public agencies and the seller reasonably

believed the information to be correct.

C. The delivery by a public agency of any infor-

mation required to be disclosed by the seller of the

property shall satisfy the requirements of this act as

to the disclosures to which the information being fur-

nished is applicable.

Section 836. Duties of real estate licensee

A. A real estate licensee representing or assist-

ing a seller has the duty to obtain from the seller a

disclaimer statement or a disclosure statement and

any amendment required by the Residential Prop-

erty Condition Disclosure Act and to make such

statement available to potential purchasers prior to

acceptance of an offer to purchase.

B. A real estate licensee representing or assisting

a purchaser has the duty to obtain and make avail-

able to the purchaser a disclaimer statement or a

disclosure statement and any amendment required

by the Residential Property Condition Disclosure Act

prior to the acceptance of an offer to purchase.

C. A real estate licensee has the duty to disclose

to the purchaser any defects in the property actually

known to the licensee which are not included in the

disclosure statement or any amendment.

D. A real estate licensee who has complied with

the requirements of subsections A, B and C of this

section, as applicable, shall have no further duties to

the seller or the purchaser regarding any disclosures

required under the Residential Property Condition

Disclosure Act.

A real estate licensee who has not complied with

the requirements of subsections A, B and C of this

section shall be subject to disciplinary action by

the Oklahoma Real Estate Commission as set forth

in paragraph 6 of Section 858-208 of Title 59 of the

Oklahoma Statutes.

E. Real estate licensee has no duty to the seller

or the purchaser to conduct an independent inspec-

tion of the property and has no duty to independent-

ly verify the accuracy or completeness of any state-

ment made by the seller in the disclaimer statement

or the disclosure statement and any amendment.

This publication, printed by the University of Oklahoma

Printing Services, is issued by the Oklahoma Real

Estate Commission as authorized by Charla J.

Slabotsky, Executive Director. The entire cost of

preparing this publication has been borne by the Real

Estate Licensees through their Education and Recovery

Fund fees.

order. The disclosures required shall also include

a statement of whether the seller has actual knowl-

edge of defects or information in relation to the fol-

lowing:

a. water and sewer systems, including

the source of household water, water

treatment systems, sprinkler systems,

occurrence of water in the heating and

air conditioning ducts, water seepage or

leakage, drainage or grading problems

and flood zone status,

b. structural systems, including the roof,

walls, floors, foundation and any base-

ment,

c. plumbing, electrical heating and air condi-

tioning systems,

d. infestation or damage of wood-destroying

organisms,

e. major fire or tornado damage,

f. land use matters,

g. existence of hazardous or regulated ma-

terials and other conditions having an

environmental impact.

h. existence of prior manufacturing of meth-

amphetamine,

i. any other defects known to the seller,

and

j. other matters the Oklahoma Real Estate

Commission deems appropriate.

2. The disclosure statement shall include the

following notices to the purchaser in bold and con-

spicuous type:

a. “The information and statements con-

tained in this disclosure statement are

declarations and representations of the

seller and are not the representations of

the real estate licensee.”,

b. “The information contained in this disclo-

sure statement is not intended to be a

part of any contract between the purchas-

er and the seller.”, and

c. “The declarations and information con-

tained in this disclosure statement are

not warranties, express or implied of any

kind, and are not a substitute for any

inspections or warranties the purchaser

may wish to obtain.”

C. Either the disclaimer statement or the dis-

closure statement required by this section must be

completed, signed and dated by the seller. The date

of completion on either statement may not be more

than one hundred eighty (180) days prior to the date

of receipt for the statement by the purchaser.

D. The Oklahoma Real Estate Commission shall

develop by rule the forms for the residential prop-

erty condition disclaimer and the residential property

condition disclosure statement. After development of

the initial forms, the Oklahoma Real Estate Commis-

3. “Purchaser” means one or more persons who

are attempting to acquire a possessory interest in

property;

4. “Real estate licensee” means a person li-

censed under the Oklahoma Real Estate License

Code;

5. “Transfer” means a sale or conveyance, ex-

change or option to purchase by written instrument

of a possessory interest in property for consider-

ation;

6. “Person” means an individual, corporation, lim-

ited liability company, partnership, association, trust

or other legal entity or any combination thereof;

7. “Contract” means a real estate purchase con-

tract for the sale, conveyance or exchange of prop-

erty, option to purchase property, or a lease with an

option to purchase property;

8. “Property” means residential real property

improved with not less than one nor more than two

dwelling units;

9. “Defect” means a condition, malfunction or

problem that would have a materially adverse effect

on the monetary value of the property, or that would

impair the health or safety of future occupants of the

property;

10. “Disclosure” means a written declaration re-

quired by this act based on actual knowledge of the

seller regarding certain physical conditions of the

property. A disclosure for purposes of this act is not

a warranty, implied or express, of any kind;

11. “Disclaimer statement” means the statement

described in paragraph 1 of subsection A of section

3 of this act; and

12. “Disclosure statement” means the statement

described in paragraph 2 of subsection A of Section

3 of this act.

Section 833. Disclaimer and disclosure

statements

A. A seller of property located in this state shall

deliver, or cause to be delivered, to the purchaser of

such property one of the following:

1. A written property disclaimer statement on a

form established by rule by the Oklahoma Real Es-

tate Commission which states that the seller:

a. has never occupied the property and

makes no disclosures concerning the

condition of the property, and

b. has no actual knowledge of any defect;

2. A written property condition disclosure state-

ment on a form established by rule by the Oklahoma

Real Estate Commission which shall include the in-

formation set forth in subsection B of this section.

B. 1. The disclosure statement shall include an

identification of items and improvements which are

included in the sale of the property and whether

such items or improvements are in normal working

PREFACE

The Oklahoma Real Estate Commission does

not have jurisdiction over the Residential Property

Condition Disclosure Act but does have jurisdiction

over a real estate licensee who fails to comply with

this act.

The Real Estate Commission is responsible for

developing and amending the disclosure and dis-

claimer forms and making such forms available.

This pamphlet has been compiled and published

for the benefit of real estate licensees and members

of the general public for information purposes only.

It is intended as a general guide and is not for the

purpose of answering specific legal questions.

Questions of interpretation should be referred to an

attorney.

Any alleged dispute or violation of this Act of a

civil nature must be adjudicated in a court of proper

jurisdiction. Further, if the violation involves a real

estate licensee, individuals should contact the Real

Estate Commission.

THE RESIDENTIAL PROPERTY CONDITION

DISCLOSURE ACT

Oklahoma Statutes, Title 60, Sections 831-839

Section 831, Short title This act shall be known and

may be cited as the “Residential Property Condition

Disclosure Act.”

Section 832. Definitions As used in this act:

1. “Offer to purchase” means an offer to pur-

chase property made by a purchaser pursuant to a

written contract;

2. “Seller” means one or more persons who are

attempting to transfer a possessory interest in prop-

erty and who are either:

a. represented by a real estate licensee; or

b. not represented by a real estate licensee

but receive a written request from the

purchaser to deliver or cause to be deliv-

ered a disclaimer statement or disclosure

statement as such terms are defined in

paragraphs 11 and 12 of this section:

sion may amend by rule the forms as is necessary

and appropriate.

Such forms shall be made available upon

request irrespective of whether the person

requesting a disclaimer or disclosure form is repre-

sented by a real estate licensee.

Section 834. Delivery of statements

A. A seller should deliver either the disclaimer

statement or disclosure statement to the purchaser

as soon as practicable, but in any event it shall be

delivered before acceptance of an offer to purchase.

B. If the disclaimer statement or disclosure state-

ment is delivered to the purchaser after an offer to

purchase has been made, the offer to purchase shall

be accepted only after the purchaser has acknowl-

edged receipt of the disclaimer statement or disclo-

sure statement and confirmed the offer to purchase.

C. If the seller becomes aware of a defect after

delivery to the purchaser of either a disclaimer state-

ment or a disclosure statement, then the seller shall

promptly deliver to the purchaser either a disclosure

statement or an amended disclosure statement

which discloses the newly discovered defect. The

disclosure statement or any amendment shall be in

writing and shall be signed and dated by the seller.

However, if the required document is delivered to

the purchaser after an offer to purchase has been

made, the offer to purchase shall be accepted only

after the purchaser has acknowledged receipt of the

required document and confirmed the offer to pur-

chase.

D. The purchaser shall acknowledge in writing

receipt of the disclaimer statement or the disclosure

statement and any amendment to the disclosure

statement. The purchaser shall sign and date any

acknowledgement. Such acknowledgement should

accompany the offer to purchase the property. If

the purchaser confirms the offer to purchase, such

confirmation shall be in writing, shall be signed and

dated by the purchaser and shall be promptly deliv-

ered to the seller.

Section 835. Limitation of seller’s liability

A. The seller shall not be liable for a defect or

other condition in the property if the existence of

the defect or other condition in the property was

disclosed in the disclosure statement or any amend-

ment delivered to the purchaser before acceptance

of the offer to purchase.

B. The seller shall not be liable for any errone-

ous, inaccurate or omitted information supplied to

the purchaser as a disclosure required by this act if:

1. The error in accuracy or omission results from

an approximation of information by the seller provided:

a. accurate information was unknown to

the seller at the time the disclosure was

made,

Oklahoma Real Estate Commission

Denver N. Davidson Building

1915 N. Stiles Avenue - Suite 200

Oklahoma City, Oklahoma 73105-4919

www.orec.state.ok.us

405-521-3387