A major source of litigation recently has been the failure to disclose a material property defect. These defects can include foundation cracks, roof leaks and termite infestation. Additionally, the existence of any environmental hazards, easements and zoning violations must also be disclosed.
Any fact that may have a significant and reasonable impact on the market value of the property is material.
A seller can be liable for damages if he does not make a proper disclosure. The seller:
A seller can only be held liable for failing to disclose if the buyer exercised reasonable diligence when inspecting the condition of the residence. This can include the hiring of a contractor to inspect the premises.
A buyer cannot later sue for material defects that he should have identified during a preliminary inspection or he knew about before the completion of the sales transaction
Like the buyer and seller, a broker also has obligations. A broker:
Real estate transactions are very complex and laws vary from state to state. An experienced real estate attorney can help you understand exactly what kind of defects must be disclosed. A real estate lawyer can also represent you in court.
Last Modified: 08-24-2015 09:04 PM PDTLaw Library Disclaimer
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