Duty to Disclose Defects

Question 1

Do you have a duty to disclose defects today?

Answer 1

Yes,
Seller must reveal all latten material defects (known to the seller but not easily discoverable by the buyer, but has a material effect on the property)

Question 2

What are the test to see if the defect is material?

Answer 2

1. Objective:
   - Whether a reasonable person would attach importance to it in deciding to buy
2. Subjective test:
   - whether the defect affects the value or desirability of the property to the buyer

Question 3

What is a merger

Answer 3

the sellers obligations under the contract terminate once the buyer & seller close (even if the title is not what was promised in the contract)

At the closing of the transaction the promises contained in the contract merge into the deed

Buyer can no longer sue the seller on promises in the contract of sale not contained in the deed

Question 4

What is the exception to merger?

Answer 4

Promises that are collateral to the contract. (removal of the car)