The issues encountered following a real estate sale can be just as troublesome as those resulting from a purchase.
Did you know that the problems that arise from a property sale can be just as painful as those resulting from a purchase?
A seller puts his house up for sale fully aware that it is built on soil containing iron ochre, which has the property of clogging drains. During a visit by potential buyers, the seller fails to disclose this information. On the contrary, in response to a specific question from the buyers, the seller states that he has never had any water problems.
Following the discovery of iron ochre in the soil, the buyers turn to the Court* and request the cancellation of the sale. They argue that the seller failed to disclose "the problems they are facing" and that, furthermore, he made "incomplete statements" that erroneously reassured them.
As a result of the seller's conduct, "the defect, assuming it was apparent, becomes legally hidden, which allows for the cancellation of the sale and the payment of damages." The court orders the sale to be cancelled and the seller to refund the buyers the sale price, minus the mortgage on the house.
In conclusion, it is therefore preferable for a seller to be honest, otherwise the courts can turn back time and set things right.
*Court of Appeal (500-09-022640-122)
