Yes, a buyer can sue a seller for not disclosing known property defects under specific conditions. Here’s a breakdown of key considerations:
Legal Basis for Suits
Most states require sellers to disclose material defects (issues significantly affecting property value or safety) through standardized forms. Failure to disclose known defects may constitute fraudulent concealment, allowing buyers to pursue legal action.
Key Requirements
- Proof of prior knowledge: The buyer must demonstrate the seller knew about the defect before the sale.
- Materiality: The defect must be serious enough to influence a reasonable buyer’s decision.
- Non-obvious defects: Issues that couldn’t be discovered through routine inspections are more likely to qualify.
- Damages: Buyers must show financial harm directly caused by the defect.
Time Limits
In Tennessee, for example, lawsuits must be filed within one year of receiving the disclosure statement or closing. Other states have varying statutes of limitations.
Practical Challenges
- Evidence hurdles: Buyers often need photos, repair records, or contractor testimony to prove the seller’s prior knowledge.
- Agent liability: Real estate agents might share responsibility if they actively concealed defects.
- Legal costs: Some contracts include attorney fee clauses that shift litigation costs to the seller if the buyer prevails.
Successful cases typically result in compensation for repair costs or reduced property value. Buyers should consult an attorney immediately upon discovering undisclosed defects to preserve evidence and assess claims.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/can-a-buyer-sue-a-seller-for-not-disclosing-known-property-defects/
