If a seller provides false information, are they liable later?
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If a seller provides false information, are they liable later?
The seller of the house we bought provided false information on their property disclosure. We were
told that the home is not in a flood plain, nor had there ever been any issues with flooding. The fact that we are not in a flood zone is correct, however there had been, and has been since, multiple flooding incidents. Is the seller liable for damages?
Asked on November 14, 2017 under Real Estate Law, Ohio
Answers:
S.L,. Member, California Bar / FreeAdvice Contributing Attorney
Answered 7 years ago | Contributor
You can sue the seller for fraud. Fraud is the intentional misrepresentation or nondisclosure of a material fact made with knowledge of its falsity and with the intent to induce your reliance upon which you justifiably relied to your detriment.
In other words, you would not have bought the house had you known it was subject to flooding.
Your damages (monetary compensation you are seeking in a lawsuit) for fraud would be either the benefit of the bargain or your out of pocket loss.
Benefit of the bargain means a defrauded purchaser may recover the difference between the real and represented value of the property purchased regardless of the fact that the actual loss suffered might have been less.
Out of pocket determination of damages for fraudulent misrepresentation permits recovery of the difference between the price paid and the actual value of the property acquired.
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