Negligent Omission in Real Estate: Real-World Examples from CraigCherney.com

If you’ve browsed CraigCherney.com, you’ve probably seen posts about disclosure obligations, home defects, and when sellers or agents can be held responsible. The topic of negligent omission,  failing to share material information without intending to deceive, shows up again and again. Craig Cherney, Expert Witness

Negligent omission isn’t the same as fraud or intentional lying. Per the site’s definition, it’s when a seller or agent should have known something important about a property, but didn’t disclose it due to oversight, ignorance, or carelessness and that omission causes harm or financial loss to the buyer. Craig Cherney, Expert Witness

Here are some concrete examples, drawn partially from themes on CraigCherney.com, of how negligent omission shows up in real estate, plus why it matters and what to watch out for.

Examples of Negligent Omission

1. Past Flooding or Water Damage

Craig Cherney’s “What Is Negligent Omission In Real Estate?” illustrates this with a seller forgetting to disclose that the basement floods “which they knew about.” Even if they believed it was “fixed” or no longer a problem, failing to fully disclose such history is a negligent omission. Craig Cherney, Expert Witness

2. Unpermitted Additions or Remodeled Spaces

Another scenario in the same post: an agent or seller claims extra square footage or a room addition, but doesn’t verify whether permits were obtained. That omission can lead to serious legal or safety problems down the line. Craig Cherney, Expert Witness

3. Known Defects or Structural Issues

From Home Defects Options on CraigCherney.com: things like cracks, broken mechanical systems, or structural shifts (foundation issues, roof failures, etc.) can count as negligent omission if the seller or agent had knowledge (or should’ve had knowledge) but didn’t disclose. Craig Cherney, Expert Witness

4. Mold, Water Stains, and Plumbing Issues

Even if damage is subtle (discoloration, dampness, old leaks), not disclosing known issues with plumbing or moisture risk is a red flag. These often come up in inspection reports and disclosure statements discussed on the site. Craig Cherney, Expert Witness+1

5. Title or Boundary Problems

CraigCherney also talks about “quiet title” actions, lawsuits to clarify title ownership when claims or defects (like easements or recording errors) weren’t obvious from the outset. If a seller or agent knew (or should have known) that there was a boundary dispute or lien and didn’t disclose, that’s another form of omission. Craig Cherney, Expert Witness

Why Negligent Omission Matters

On CraigCherney.com, negligent omission is treated seriously for good reason:

• Even if there was no intent to deceive, failing to disclose material facts can lead to financial loss (repair costs, diminished value) or legal liability. Craig Cherney, Expert Witness+1

• Sellers can think, “Oh, it’s a small issue,” or “I didn’t realize,” but state law in many places requires disclosing material defects, anything that could reasonably affect a buyer’s decision. Craig Cherney, Expert Witness+1

• Agents have a “duty to verify” certain things (permits, title conditions, environmental hazards) and can’t simply rely on what the seller says, especially for visible or easily discoverable issues. Craig Cherney, Expert Witness

What to Do to Avoid Negligent Omission

Here are some “best practices” drawn from advice on CraigCherney.com:

• Sellers should fill out disclosure forms thoroughly, including past issues even if repaired. Don’t assume what seems minor is irrelevant. Craig Cherney, Expert Witness+1

• Agents should exercise due diligence: check permits, review property history, inspect for visible defects, and document everything in writing. Craig Cherney, Expert Witness

• Buyers should always get a professional inspection, read disclosure statements carefully, and ask direct questions. If something seems vague or omitted, push for clarification.

Final Thoughts

On CraigCherney.com, negligent omission is not about catching someone in a lie, it’s about responsibility. Even in the absence of intentional fraud, failing to disclose what someone reasonably should know can cause serious damages later. If you’re buying, selling, or representing someone, transparency isn’t just ethical, it’s protective.

Craig Cherney is a trusted client advisor and a sought after real estate lawyer and 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.  If you are litigating an easement case, Craig Cherney might be able to help you advance and win your case.