REAL ESTATE SALES

You just purchased your dream house overlooking Lake Candlewood. While having an iced tea on the deck two weeks after the closing, you notice effluent bubbling out of the ground in your back yard. The town sanitarian pays you a visit and informs you that a new septic system must be installed, which you learn will cost $30,000.00. Thinking back on your conversations with the previous owners, who now live in Alaska, you do not recall anything being discussed about the septic. Is there anything you can do?

In Connecticut, a Seller of real estate has an obligation to disclose facts that are material to the sale A fact is material if a purchaser would reasonably rely on same in deciding whether or not to consummate the purchase. In the scenario raised above, the sellers clearly had a duty to disclose any defect that they were aware of in connection with the septic. Accordingly, despite the fact that the sellers have relocated to Alaska, the buyer can commence a lawsuit in Connecticut against the sellers for fraudulent concealment or nondisclosure. However, the buyer will be required to prove by clear and convincing evidence that the sellers had notice of the defective septic. If successful, the buyer should also be able to recover legal fees.

The right to bring a claim against the Seller would still exist even if the buyer had hired an inspector to test the septic system. The seller is not permitted to conceal a latent defect. However, the buyer may also be able to file a negligence claim against the inspector for his failure to discover the defect.

If you have any questions regarding real estate transactions or any other legal matter, please give me a call at 746-6656 or e-mail me at rsmith@attorneyrichardsmith.com

Richard A. Smith, Esq.
Attorney at Law