The trouble of selling a home in a down market causes some unscrupulous homeowners to take desperate and devious action to increase the purchase price. The Pennsylvania Real Estate Disclosure Law (RESDL), 68 Pa.C.S. §7301, is meant to provide a remedy for home buyers who purchase a home and subsequently discover defects that were purposefully hidden by the seller.
The RESDL requires that a seller of real estate fill out a standardized form, disclosing the known material defects of his property for the benefit of potential buyers. The law presumes that buyers use this information in making purchasing decisions. If the seller lies or knowingly provides a misleading statement on the disclosure form, the statute allows the buyer to recover actual damages from the seller for up to two (2) years after settlement. Moreover, the Pennsylvania Unfair Trade Practices and Consumer Protection Law (UTPCPL), 73 P.S. §201-2, et seq. provides for treble damages in these cases.
Typical actions brought under the RESDL involve leaky roofs, basement flooding, and latent defects in septic systems and plumbing. Many instances of seller deception involve serious problems which the seller attempts to “fix” himself, and considers the problem solved for purposes of disclosure to potential buyers. In these situations, where the seller does not have proper permits and approval from the appropriate government agency, the seller cannot justifiably believe that the problem has been corrected, and must disclose the history of repairs and past problems to potential buyers. Anderson v. Harper, 424 Pa.Super. 161 (1993).
Note that RESDL does not create any duty to disclose conditions or defects on neighboring properties or in the neighborhood itself. For instance, a seller does not have the duty to disclose known plans for the construction of a busy road in the vicininty of the home, or that the property is adjacent to a group home for mentally-challenged adults. Neville v. Karakantas, 146 M.C.L.R, Part II, 261 (2009); Colaizzi v. Beck, 895 A.2d 36 (Pa. Super. 2006). Similarly, the duty to disclose does not apply to the seller of a condominium with regard to common elements or common facilities of the condominium. 68 Pa. C.S. §7302(b).
As preventative measures, prospective home buyers should always consider having a home inspection completed by an inspector who is familiar with the neighborhood, having him also inquire as to permit requests for the property with the local government where the home is located. Should you discover that a seller of real estate lied to or mislead you, it is important to document the self-help remedies and other efforts that the seller took to hide the home’s defects, and contact an attorney immediately.
Should you have any questions about this, please do not hesitate to contact me.
