Seller Lied On Property Disclosure Statement
Seller Lied on Property Disclosure Statement
When information has not been disclosed about a house that has been purchases can a buyer sue a seller? The buyer needs to know about problems from black mold to a leaky roof. If this is not disclosed by the seller, do you need legal help or can this be settled by you as an individual. The answer is it depends on the laws in your state and what stage of the purchase you are at. Read on to learn more.
Disclosure Laws
Although laws differ in different locations, in most areas of the US, sellers are under a legal obligation to disclose information that may impact the value of a property to the buyer. This may be a termite infestation or a property line argument. When a house was built prior to 1978 and there is lead based paint, it has to be revealed as well.
Info must be volunteered. Just waiting for the buyer to ask a pertaining question is not sufficient. Obviously, if the seller is not aware of a problem, they are under no obligation to disclose it. But if something was known and not mentioned, there may be serious consequences for the seller. A seller may be on the hook for not disclosing facts and misrepresenting facts as well as intentional misrepresentation or concealment or suppression of facts.
Should You Sue Before The Sale?
If the contract has bot been signed, it may be possible to cancel the purchase. Laws in many states allow the buyer to cancel the sale when particular facts are discovered during the transaction. Contingencies are highly recommended by the majority of real estate attorneys and any monies held in escrow need to be returned.
Should You Sue A Seller For Failure To Disclose After The Sale?
Once the property has been purchased things can get more complex and you may wind up going to court. But a lawsuit may still be avoided. The buyer who is unhappy can contact the seller to see if a deal can be brokered to settle the outstanding issues. There are contracts with provisions that state mediation must occur before lawsuits can be filed, while others say they must go to arbitration and then go to court for litigation.
If it does end up in court, you can look for monetary damages for the sellers failure disclosing information or misrepresentation regarding the property. The amount you may sue for includes damages for the difference between the total the buyer paid and the fair market value of the property at the time the property was sold.
Source: https://www.realtor.com/advice/buy/sue-false-information-given-sellers/
Real Estate Expert Witness Services by Craig Cherney, Esq.
Are you involved in failure to disclose litigation?> Craig Cherney is a trusted client advisor and a sought after real estate expert witness who is hired by the nation’s top real estate litigation attorneys to help resolve their litigated real property matters. Craig has appeared as a testifying expert witness before judges and juries in California, Arizona, Nevada and other jurisdictions across the country. Craig Cherney, Esq. Expert Witness Real Estate. 480-399-2342. Mr. Cherney has served as a real estate expert witness opining on the standards of care required for seller disclosures in a host of litigated failure to disclose real estate cases. Contact him today to see if he can bring value to your real estate litigation efforts.
Disclaimer: This Post Is Not Legal Advice.
You should not ever depend on an online post for legal advice as the law and codes changes often, information sometimes might not be accurate, there can be exceptions to the rule, and wholesale reliance on such matters could be damaging. Always consult with experienced attorneys for current, effective, and factual legal advice.