In the property sale process, a fundamental principle of Caveat Emptor, i.e., let the buyer beware, is applied, which means that while buying any property, the buyer must inspect the property following complete due diligence. In that case, the seller is not obligated to disclose any ‘visible’ defect known as the ‘patent defect’ in the property. On the other side, the seller cannot hide or conceal defects present in the property, as it will be called fraudulent concealment, according to the law. Also, the seller cannot try to hide or conceal any defect in the property that is not visible to the buyer but is known by the seller. Few exceptions of the principle of buyer beware about latent defects are as follows:
Awareness about the latent defect due to which the property becomes uninhabitable;
Misrepresentation did fraudulently;
Breach of duty to reveal about the defect;
False and reckless claims and statements regarding the fitness of the property being habitable. Above mentioned exceptions have the power to cause legal troubles for the misguiding seller of the property. In cases where the buyer has been deceptively made to enter a purchase agreement by the seller, the purchaser may have a chance in the appropriate court of law to get that agreement rescinded, which means to get that agreement set aside and canceled.
The Burden of Proving Latent Defect on the Purchaser
In the case where a purchaser claims about a latent defect or hidden damage against the seller, the purchaser must establish the following things to succeed against the seller:
That the seller or the broker or the agent of property made a representation about a fact to the purchaser;
That the fact represented by the seller was false;
That the false representation of the fact by the seller or the agent was made recklessly and knowingly, without knowing whether that fact was true or false;
That the seller or the agent had an intention to make the purchaser act upon the representation made by them;
The purchaser finally acted on the wrongful and false representation made by the seller by entering into a contract relying on those false representations and suffered losses as a consequence. It is the utmost duty of the sellers to make the purchasers aware of the unknown facts relating to the nature of the property, the defects in the property, be it a patent defect or latent defect, to protect themselves from the legal claims against them by the purchasers.
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