Are you a vendor who is trying to sell a property? Then you must be wondering whether you should disclose all defects on it to the potential buyers or not. You are not aware about all the defects in the property. For example, latent defects are not visible to your naked eyes at all. Let’s take a look at some of the scenarios where the vendor of the property would be liable to the buyer of the house when a defect is discovered in a newly sold house.
- When the vendor has no understanding on it
If the vendor doesn’t have a clear understanding about the latent defect, or if the latent defect has not been disclosed at the time of closing the sale, the vendor would not be liable.
- The vendor has an understanding on it
If the person who purchases the property discovers a latent defect after closing the sale, the vendor would not be viable for it. This is why it is essential for home buyers to pay special attention to finding even latent defects before closing the sale.
- When the vendor has knowledge, but the defect is potentially hazardous or dangerous
In this kind of a scenario, the vendor would be liable for the person who bought the property. It is essential for the vendor to figure out defects that are potentially hazardous or dangerous. Upon discovering the defect, it is important to disclose it as well. Failing to do it can be considered as fraud.
- When the vendor is aware about the defect, but conceals it
Concealment is something common that we can see. To overcome such problems, all property buyers should do a detailed final inspection at the property, including the basement. Active concealment of even a latent defect can be considered as fraud. Hence, the vendor would be held liable for all damages.
Now you are aware about the situations where the vendor is liable for the defects of the house. While keeping these facts in mind, it is essential for vendors to act accordingly. To stay on the safe side, vendors should work with the sellers and see whether they can get to know about all defects present in the property. Then it is important for a vendor to do an independent inspection and find defects on his own as well.