State Disclosure Forms...
The Washington State Supreme Court said that buyers have no recourse to a seller's negligent misrepresentations in their disclosure form unless that recourse was negotiated as a part of the original contract with the seller. Otherwise buyers are on their own.
Then a lower court said that this extends to intentional misrepresentation as well.
Wow.
In their indomitable fashion, the Statewide Purchase and Sale Agreement Task Force ( I wonder if anyone calls them SPSATF---sounds federal) jumped in and plugged the hole by adding verbiage in the contract explicitly stating that the buyer does have recourse to intentional misrepresentations. (With the exception of some attorneys and new-construction agents just about every real estate professional in the area uses the statewide form.)
Negligent misrepresentation is still a matter of negotiation. As part of the selfsame Statewide contract there is a choice to be made as to whether the buyer will have recourse. I've heard the negligent misrepresentation standard described as what a reasonable person would feel the need to disclose. So why would a seller have a problem allowing the buyer recourse for this? Good question. Others say that negligent misrepresentation can potentially encompass more than just the reasonable standard. And why leave more doors open for potential litigation?Shouldn't the buyer be relying upon and performing a thorough investigation of their own including inspections , title searches, etc.? This can go on for pages and pages.
It isn't open and shut in any event, and needs to be acknowledged as a part of every buyer and seller's negotiation. The NorthWest Multiple Listing Service has a good bulletin explaining it----all parties should probably read it prior to making or accepting an offer.
And as they love agents to say, you are advised to seek legal counsel.
Wow.
Date: 2009-08-17 12:18:29