Posted by River City on October 10, 2005 at 16:28:50:
This is generally governed by state laws. It is the sellers responsibility to disclose anything that the seller knows about that would affect the material value of the property. Now, if the purchaser is privy to information that is not public knowledge, then there might be a problem. I would consider that something similar to insider trading.
I am not an attorney, so the above is just a guess on my part. You might want to contact a real estate attorney in your area.
Hi,
I was wondering if the US law demands “good faith” in contracts? I`m studying Israeli law right now, and in Israel there is a “duty to disclose essential information” when negotiating a contract.
For example, if the buyer knows the zoning is going to change and the land will be worth a lot more, and he doesnt say anything to the seller, a judge will probably cancel the contract.
Or for example a person who introduces himself as the owner of a house (to the buyer) and as a buyer (to the seller), and then buys the house and sells it for more to the buyer - this thing happened in Israel and the court cancelled the contract.
Is it like this in the US as well?
Thanks,
Asaf