Real Estate Law
There are many unknown factors that could play into a buyers purchase of property. Most deal directly with the property itself. That is why there are certain time periods including inspections, finance, and clear title. You may find that there is an unknown lien on the property, the roof still leaks after a recent repair, or there is a pending lawsuit on the building of a property making it un-financiable under mortgage products you’re comfortable with.
However, what about other factors? What about off-site conditions that may arise? The federal courts heard a case recently that dealt with an unruly neighbor and a developers duty to disclose. The buyer fought his way up the court the system hoping to find the developer liable for failing to disclose this unruly neighbor. The claims of the buyer included misrepresentation of the neighbors disruptive behavior and infliction of emotional distress against the developer.
At a showing of the property the neighbor approached the potential buyer to warn the buyer of the developer. The buyer asked the representing agent if the neighbor was an issue and the agent explained that the neighbor was upset about his warranty services for repairs expiring.
The buyer entered into contract with the developer. The developer then sent a letter prior to closing to the neighbor requesting he no longer park in the driveway of or in front of the property under contract. The buyer claims the letter caused retaliation of the neighbor against the buyer through comments and behavior. The buyer was forced to get a restraining order against the neighbor.
The trial courts heard the case and dismiss it. The buyer appealed. The court of appeals upheld the trial court ruling and examined the developers need to disclose. Due to the unknown nature of the neighbor the developer was not found liable as there was no way to foresee the actions of the neighbor. The case was dismissed.
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