Monday, January 6, 2014

Reed v. King case brief

Reed v. King case brief summary
145 Cal. App. 3d 261 (1983)

CASE SYNOPSIS
Plaintiff homebuyer challenged an order of the Superior Court of Nevada County (California), which dismissed plaintiff's complaint against defendants, real estate agents, for rescission of the real estate contract.

PROCEDURAL HISTORY
The lower court dismissed plaintiff homebuyer's action for rescission of the real estate contract after she learned that a multiple murder had occurred in the house.

DISCUSSION

  • The court found that the failure of defendant real estate agents to disclose physical defects and legal impediments to the use of the real property were material to the contract. 
  • The court held that there was no basis for making the duty to disclose turn on the character of the information. 
  • The court reversed because the fact of the murders may have had a quantifiable effect on the market value of the real estate, which plaintiff was entitled to prove.

CONCLUSION
The court reversed the order of the trial court that dismissed plaintiff homebuyer's complaint against defendant real estate agents because defendants' failure to disclose the fact that murders had occurred in the house was material to the real estate contract.

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