The seller has a duty to disclose any known latent defects that threaten structural soundness or personal safety.
Buyers have been able to either rescind the sales contract or receive damages when a seller fails to reveal known latent defects. The courts also have decided in favor of the buyer when the seller neglected to reveal violations of zoning or building codes.
In addition to the seller’s duty to disclose latent defects, the seller’s licensed real estate agent has an independent duty to conduct a reasonably competent and diligent inspection of the property.
It is the licensee’s duty to discover any material facts that may affect the property’s value or desirability, whether or not they are known to or disclosed by the seller. Any such material facts discovered by the licensee must be disclosed to prospective buyers. If the licensee should have known about a substantial defect that is detected later by the buyer, the licensee may be liable to the buyer for any damages resulting from that defect. The statute of limitations is one year for buyer action.
