Legal Question in Real Estate Law in Ohio

Re: Disclosure - Material Defects

Dear Sellers: Even though you may consider the "minor shifting" present, your purchaser may not be so accommodating. Ohio's statute requiring full disclosure and the caselaw decisions regarding disclosure of defects by the Seller does not condone hedging.

In the case of Foust v. Valleybrook Realty Co. (1981), 4 Ohio App.3d 164, the Court held:

Sales - Real estate - Sellers and agents - Duty to disclose material facts - Principal and agent - Relationship - Fraud - Damages recoverable - Punitive damages - Principal liable therefor, when.

O.Jur 2d Fraud and Deceit �� 49, 81, 136.

1. Vendors and their agents have a duty to disclose any material facts which are not visible and nondisclosure is willful misrepresentation. Purchasers have a duty to inquire and to inspect the premises in a prudent manner. However, the purchasers also have a right to rely upon the representations of the vendors and their agents and need not inquire of others after receiving answers to their questions.

I strongly urge you consult an experienced real estate attorney to assist you. Good luck.

Sincerely, J. Norman Stark

Re: Disclosure - Material Defects

Dear Seller(s): To supplement my earlier response, I attach my published article for your information:

CONSTRUCTION LAWLETTER

March, 2007

REAL PROPERTY �SELLER�S DISCLOSURE STATEMENT

Ohio�s Seller�s Disclosure Statement is, in effect, a statutory affidavit. Requirements of disclosure, under Section 5302.30 R.C., effective on March 19,1993, requires sellers of residential real property to make honest, full disclosure, ��in good faith�� , of all known defects, in writing, in an affidavit form, signed by the Sellers and presented to Purchasers.

The new rules apply to ��any transfer of residential real property that occurs on or after July 1, 1993, by sale, land installment contract, lease with option to purchase, exchange, or lease for a term of ninety-nine years and renewable forever. For purposes of this section, a transfer occurs when the initial contract for transfer is executed, regardless of when legal title is transferred��

The form requires ��a statement of the conditions of the property and of information concerning the property actually known by the transferor; that, unless the transferee is otherwise advised in writing, the transferor, other than having lived at or owning the property, possesses no greater knowledge than that which could be obtained by a careful inspection of the property by a potential transferee; that the statement is not a warranty of any kind by the transferor or by any agent or subagent representing the transferor in this transaction; that the statement is not a substitute for any inspections; that the transferee is encouraged to obtain his/her own professional inspection; that the representations are made by the transferor and are not the representations of the transferor's agent or subagent; and that the form and the representations contained therein are provided by the transferor exclusively to potential transferees in a transfer made by the transferor, and are not made to transferees in any subsequent transfers.

Good luck.

Sincerely,

J. NORMAN STARK