Appendix B: Residential Property Condition Disclaimer Statement

Understanding Oklahoma's disclaimer form for sellers with no occupancy or knowledge of defects

When to Use Appendix B

Appendix B is the appropriate disclosure form when BOTH of the following conditions are true:

Condition #1

You have never occupied the property as your residence and make no disclosures concerning the condition of the property

Condition #2

You have no actual knowledge of any defect concerning the condition of the property

Both Conditions Must Be True

If you have either occupied the property or have knowledge of defects, you must use Appendix A instead.

Misrepresenting your knowledge or occupancy status to avoid disclosure can result in serious legal consequences and financial liability.

Common Situations for Appendix B

Appendix B is typically used in these scenarios:

Inherited Property

You inherited a property from a deceased relative and never lived there. You may not know the detailed condition of systems or history of repairs. However, if family members told you about specific problems, you have "actual knowledge" and must use Appendix A.

Land or Lot

You're selling vacant land without structures, or a lot you purchased for investment and never improved. There are no systems to disclose and you have no knowledge of subsurface conditions.

Foreclosure or Bank-Owned (REO)

A bank or lender acquired the property through foreclosure and has never occupied it. The bank has no knowledge of the property's history beyond what's in public records. Must be sold "as-is."

Estate Sale (Executor/Administrator)

You are the executor of an estate selling property on behalf of heirs who never lived there and have no detailed knowledge of the property's condition beyond basic observation.

New Construction - Builder/Developer

A builder selling a newly constructed home that has never been occupied. However, the builder does have knowledge of construction and warranties, so this may require Appendix A depending on circumstances.

What Does Appendix B Actually Say?

Appendix B is a brief declaration that includes the following statement:

"Seller has not occupied the property. Seller makes no disclosure as to the condition of the property. Seller has no actual knowledge of any defect concerning the condition of the property."

This disclosure is attached to and made a part of that certain Purchase Agreement between the undersigned Seller(s) and Buyer(s) dated _____________.

This Does NOT Eliminate Liability

Appendix B protects you from disclosing things you genuinely don't know. However, if you later discover you did have knowledge of a defect, or if it's proven you occupied the property, you can still be held liable for misrepresentation.

When You CANNOT Use Appendix B

You must use Appendix A instead if any of the following apply:

✗

You Ever Lived in the Property

Even if it was 20 years ago for just 6 months. Any occupancy = Appendix A required.

✗

You Have Any Knowledge of Defects

A tenant told you the furnace is broken, you saw water damage, inspector found mold, etc. Any actual knowledge = Appendix A required.

✗

You Made Repairs or Improvements

If you replaced the roof, fixed foundation issues, or made improvements, you have knowledge = Appendix A required.

✗

Property Was Rental and You Managed It

If you collected rent, handled repairs, or dealt with tenant complaints, you gained knowledge of the property = Appendix A required.

✗

You Had Inspections Done

If you ordered inspections (home, pest, radon, etc.) and learned of defects, you have actual knowledge = Appendix A required.

✗

Insurance Claims Were Filed

Storm damage, fire, water damage - if you filed claims or know about them, you have knowledge = Appendix A required.

Legal Implications & "As-Is" Sales

Using Appendix B typically means the property is being sold "as-is" - meaning you're not making warranties about the condition. Buyers understand they're taking on more risk.

•Buyer's Due Diligence: Buyers should be strongly encouraged to get professional inspections since you're providing no condition information

•Price Adjustment: Properties sold with Appendix B (no disclosure) typically sell for less than fully-disclosed properties

•Legal Protection: Appendix B protects you from liability for unknown defects, but NOT for defects you knew about or should have disclosed

•Fraud Still Applies: You cannot use Appendix B to hide known problems. That's fraud and carries severe penalties

Should I Use Appendix A or Appendix B?

Follow this decision tree to determine the correct form:

Question 1: Have you ever lived in the property?

→ If YES: Use Appendix A
→ If NO: Continue to Question 2

Question 2: Do you have any knowledge of defects, problems, or repairs?

→ If YES: Use Appendix A
→ If NO: Continue to Question 3

Question 3: Did you manage the property, collect rent, or handle maintenance?

→ If YES: Use Appendix A
→ If NO: Continue to Question 4

Question 4: Did you receive any reports, inspections, or complaints about the property?

→ If YES: Use Appendix A
→ If NO: You can use Appendix B

Best Practices When Using Appendix B

•Document your lack of knowledge: Keep records showing you never occupied or managed the property
•Encourage buyer inspections: Put in writing that buyer should conduct thorough inspections
•Price appropriately: "As-is" sales with no disclosure typically require price adjustment
•Consult an attorney if unsure: When in doubt between Appendix A and B, use Appendix A or get legal advice
•Update if you discover issues: If you learn of problems before closing, you must amend to Appendix A

Questions About Appendix B?

If you're unsure whether Appendix B is appropriate for your situation, we can help clarify or refer you to legal counsel.

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