law

Caveat Emptor in Alabama

Alabama still applies 'let the buyer beware' to sales of used (previously occupied) homes and has no statute requiring a seller property condition disclosure form. Courts recognize exceptions such as a fiduciary relationship, a direct inquiry answered falsely, known health or safety defects not discoverable by reasonable inspection, and active concealment. The doctrine protects sellers only; under §34-27-36(b)(3), licensees must disclose known significant defects, including latent structural defects.

Exam tip
Seller may stay silent; agent may not hide. A question about the seller's duty starts with caveat emptor; a question about the licensee's duty on a known defect ends with 'disclose.'
Example
A seller tells his listing agent that the septic system backs up in heavy rain and asks her not to mention it. The agent must still disclose this known significant defect.

Related terms & state variants

Sources

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Last verified: 2026-10-23