Name a time that law has actually been applied. All Sates have such a law, yet, no one is held to it.
No report to relator boards ever results in punishments for relators lying. For one thing, agent/brokers simply claim their clients fills out the disclosure forms so the agent/broker is not the liar.
Nearly 50 reported cases, from appellate courts, on Sec. 5.008 alone. If you figure 1% of filed civil lawsuits produce a published opinion from an appellate court, and that most letters from an attorney, threatening to file a lawsuit, do not actually wind up in a filed lawsuit, that works out to over 10,000 times Texans have put that law to use.
The owner simply doesn’t see a defect or malfunction or simply never looked can say, ‘no’ or ‘unknown’. That leaky dishwasher? Never knew.
Can someone lie? Gee officer, I didn't know that tiny baggie, with the stuff that looks like powdery rock salt, was actually crystal meth! Of course. That doesn't mean they will get away with the lie.