Articles Posted in Real Estate Litigation

As we reference on our web-site (above), the New York State Property Condition Disclosure Act requires sellers to complete the state mandated form or offer the buyers a $500.00 credit at closing for failure to complete and provide such form in the real estate transaction. Many sellers attorneys recommend that sellers simply provide the credit because you risk litigation over “latent defects” after the real esate closing.

For example, in one recent case the Seller-Defendants answered “No” to certain questions on the New York State Form, and the Plaintiff-Buyer’s home inspector did not report that the property had any material defects. After closing, however, the Buyer allegedly discovered material defects in the property, and commenced suit against the old sellers. The litigation asserted causes of action in fraud and for breach of contract stemming from the allegedly defective conditions

The Supreme Court (trial court) permitted the suit to proceed on the issue of breach of contract and fraud. The Appellate Division, Second Department (appeals court) reversed in part, and dismissed the cause of action for breach of contract because the contract provided that the premises had been inspected and was being sold “as is”.