Interesting disclosure decision by Va. trial court

The clearly titled Virginia Real Estate, Land Use & Construction Law Blog has an interesting story about a lawsuit in Charlottesville.

A buyer of a residence suffered flooding caused by a clogged drain of a neighboring property. The buyer learned that the drain had clogged and caused flooding of the residence several times before the purchase. The purchase contract contained a home inspection contingency, but the inspection did not reveal the problem. The sellers and agent did not disclose the problem.

The buyer sued the agent for fraud and for not revealing the defects.

[T]he court dismissed the fraud and constructive fraud claims finding there was no showing of active concealment of the flooding as opposed to mere lack of disclosure. The court permitted a count based on "Breach of Statutory Duty to Disclose Material Adverse Facts" based on the code section.

Cautions the blog, "The Agents and sellers should beware of this case as it may provide a complete end run around the contract and traditional concepts of caveat emptor."

Click here to read the whole thing.

About Andrew Kantor

Andrew is VAR's editor and information manager, and -- lessee now -- a former reporter for the Roanoke Times, former technology columnist for USA Today, and a former magazine editor for a bunch of places. He hails from New York with stops in Connecticut, New Jersey, Cincinnati, Columbus, and Roanoke.
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One Response to Interesting disclosure decision by Va. trial court

  1. This is the reason why it is important to bring an expert home inspector with you when checking a home before buying it to avoid these kinds of issues and for you to make sure that everything is okay before closing the deal.

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