Failing to disclose property defects during a home sale can lead to serious legal consequences for sellers. While Virginia operates under a “buyer beware” system, sellers are still responsible for certain disclosures. As such, they can face legal action if they intentionally hide defects.
Virginia’s property disclosure law
Virginia law requires sellers to provide buyers with a Residential Property Disclosure Statement. This shifts much of the responsibility onto the buyer to inspect the property. While the seller isn’t obligated to reveal every issue, they must not actively conceal or lie about major problems. If a seller knowingly hides a defect, the buyer can take legal action.
Fraudulent nondisclosure
Fraudulent nondisclosure occurs when a seller hides or misrepresents significant issues with the property. Buyers who discover these defects after purchasing the home can file a lawsuit to recover repair costs. In some cases, they have the right to demand the sale be undone.
Breach of contract
Sellers can also face lawsuits for breach of contract if they fail to honor agreements made in the sales contract. If the contract guarantees that the property is free of major issues, and those issues are later discovered, the buyer can seek compensation. Breach of contract claims often involve damages such as repair costs or reduced property value.
How buyers can protect themselves
Buyers should hire a licensed home inspector to check the property before closing. Inspections can uncover hidden issues that a seller might not disclose. Buyers can also negotiate contingencies in the sales contract. This gives them the right to back out or demand repairs if the inspection reveals major problems.
Why honesty in property sales matters
Transparency in real estate sales fosters trust between buyers and sellers, helping to ensure a smooth transaction. By being forthright about a property’s condition, sellers can avoid potential disputes, and both parties can move forward with confidence in their decision.