[CLC-Discussion] Seller Liability under Johnson

[Thomas C. Cooney]

Ian:

The answer relates back to the Seller's knowledge of the full extent of
termite damage.  Assuming that a standard residential disclosure form was
used for your client's transaction, what were the specific disclosures
provided by the Seller regarding both inspection and treatment for
"termites, dry rot, pest or wood destroying organisms?" 

In this instance you indicate that Seller disclosed prior treatment.  Did
Seller also provide the date, type of treatment and company name?  Any
proposal/estimate/contract and/or invoice from the treating company should
have indicated the extent of infestation to be treated.  If the full
extent of infestation/damage is indicated on any
proposal/estimate/contract and/or invoice, then an argument could be made
that the Seller was on notice and would have a duty to disclose the full
extent of such termite damage. 

Thomas C. Cooney, Esq.
Assistant General Counsel
Office of The General Counsel
School Board of Broward County, Florida
754-321-2050

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Ian Kravitz <Ian at mkpalaw.com> on Monday, July 01, 2013 at 10:44 AM -0400
wrote:
>Interesting fact pattern.  Seller discloses prior treatment of termite
>damage.  Some minor termite damage visible from buyer inspection.  In
>reality, extensive termite damage had been covered up by seller using
>much effort, including actually plastering rotten wood, texturing to look
>like actually wood, and then painting over.  After moving in, covered up
>damage begins to expand and fall from home.  Further inspection
>discovers extent of damage.
> 
>Obviously some termite damage was open and obvious.  However, extent of
>the damage was not open and obvious.  While a further detailed
>inspection may have discovered the greater extent of damage, Johnson does
>not generally require inspection when seller has intentionally covered up
>extent of damage.
> 
>Any thoughts on how this one plays out if buyer sues seller for
>intentionally covering up “extent” of the damage?
> 
>Ian T. Kravitz, Esquire   [
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