Which statement about seller disclosures is correct if they were based on inspections?

The statement about seller disclosures being based on inspections that correctly reflects the legal expectations is that sellers are only liable if they were aware of the defects. This means that sellers must disclose defects that they knew about at the time of sale but are not generally responsible for disclosing defects they were unaware of, even if an inspection had taken place.

This principle is rooted in the idea that the seller's obligation is to provide accurate information to buyers to the best of their knowledge. If a seller has no knowledge of a defect, they cannot be held liable for it. Inspections can help identify defects, but if the seller did not know of any issues prior to the sale, they are not accountable for claims related to those defects post-sale.

While some responsibility exists to provide truthful information, the extent of that liability hinges on the seller's knowledge. Hence, this principle strikes a balance between protecting buyers and maintaining fairness for sellers. Other statements misinterpret this balance by suggesting absolute liability or requiring the disclosure of every potential defect, which is not the industry standard.