Materiality turns on whether a reasonable buyer would consider the condition important to the purchase decision. Duties arise by statute, and in some states by common law where the defect is latent and known.
Stigma conditions are treated differently by state.
Alternative Names:
Defect Disclosure|Known Defect Disclosure
Why it Matters?
Latent and known is the combination that triggers common law disclosure duties in most jurisdictions, since a patent condition the buyer could observe requires no disclosure and an unknown condition cannot be disclosed. Establishing seller knowledge is therefore the analytical center of any nondisclosure claim. Stigma conditions including deaths on the property are expressly excluded from disclosure duties in several states while required in others.
Frequently Confused with
Related terms
Frequently asked questions
What triggers a common law disclosure duty?
Are stigma conditions disclosable?
