Question 23

C: A home inspector incorrectly states that the heating system is working perfectly when it is not.

The seller is not liable for defects that were misrepresented by a home inspector. In this case, the incorrect assessment of the heating system's condition falls under the responsibilities of the inspector, not the seller.

A) a leak in the roof that the seller knows about

The seller is liable for any known defects, including a leak in the roof. If the seller is aware of such a defect and fails to disclose it to the buyer, this constitutes a breach of their obligation to provide accurate information about the property's condition.

B) a large hole in the basement that the seller knows about

Similar to option A, the seller is liable for a large hole in the basement if they are aware of it. Disclosure of material defects is required, and knowingly concealing such a significant issue would leave the seller exposed to legal liabilities.

C) A home inspector incorrectly states that the heating system is working perfectly when it is not.

This option correctly identifies a situation where the seller is not liable. The misrepresentation made by the home inspector absolves the seller of responsibility, as the defect was not known to them and was misrepresented by a qualified professional.

D) A home inspector states that the roof is in good condition, but the seller knows it leaks.

In this instance, the seller would be liable because they are aware of the roof's defect despite the inspector's statement. The seller has a duty to disclose any known issues, making them responsible for the leak.

Conclusion

Option C is the correct answer because it illustrates a scenario where the seller is not accountable for a defect that was misrepresented by a home inspector. In contrast, options A, B, and D involve known defects for which the seller would be liable due to their obligation to disclose material issues. Thus, only option C clearly indicates a situation where the seller's liability does not apply.