The seller, seller's agent, and buyer's agents have duties to disclose material defects to the buyer. The seller must disclose all known and openly obvious defects, or else they risk the sales contract being rescinded (i.e., voided) and being held liable for the buyer's consequential damages.
What is an example of failure to disclose?
For example, failure to disclose pest infestation that happened in the past in the area where the property is located.
What are the consequences of failure to disclose?
The failure to disclose known defects or issues that affect the “value or desirability” of the property can result in substantial liability to seller and their agent(s), and often result in litigation.
What are examples of misrepresentation in real estate?
What are some examples of misrepresentation in real estate? One example of misrepresentation in real estate is marketing a rental property as new, despite its being occupied for years. Another example is selling a piece of property with an undiscovered defect, e.g. a leaking roof.
What is the right to not disclose information?
Under the Privacy Act's disclosure provision, agencies generally are prohibited from disclosing records by any means of communication – written, oral, electronic, or mechanical – without the written consent of the individual, subject to twelve exceptions.
Why do short sales get denied?
Just because a seller accepts a short sale price doesn't mean that the lender will, and the list price may be far below what the lender wants. Banks may reject offers when the price is low, the seller or buyer doesn't qualify, the application is incomplete, or the loan has already been sold.