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Courts hear more failure to disclose real estate litigation

On Behalf of | Aug 12, 2020 | Real Estate

The number of cases litigated in Indiana real estate courts due to a failure to disclose allegations is seemingly on the rise. Disclosure laws in the state are clear for the most part, but there is a bit of gray in some areas.

A person selling a home will likely protect themselves from any real estate law issues with a simple disclosure of all information to a potential buyer that may play a role in his or her decision to purchase. One example would be the knowledge that a neighbor next door owned three large dogs that bark loudly whenever the neighbor is away from home.

It is likely that after the buyer lives in the home for a few days, he or she will become convinced the seller knew of the barking dogs. If the buyer feels the purchase would not have taken place if they possessed knowledge of the dogs, this is the basis of failure to disclose complaints.

There are undisclosed factors most likely to lead to litigation when a failure to disclose allegation is made. Buyers are responsible for inspecting a property before a purchase, but courts will often not find it feasible that a simple inspection will uncover these and other complex issues. Some include:

  • Structural problems
    • Drainage issues
    • Encroachments
    • Water penetrations

The failure to disclose allegations are more serious when a seller also takes measures to hide the presence of a problem from potential buyers. Evidence of this type of action can place the seller in real trouble with the court.

Buying or selling a home is a complicated process that is best overseen by professionals with prior experience. Individuals involved with a real estate transaction may find they enjoy a smoother process when they trust the counsel of a real estate attorney.

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