A Washington seller completed Form 17 and disclosed that the property had no known water intrusion issues. After closing, the buyer discovered extensive hidden water damage that a professional inspector later determined had been present for several years and would have been visible to anyone who lived in the home. The seller claims he 'didn't think it was a big deal.' Under Washington law, which of the following best describes the seller's potential liability?
Correct Answer
A) The seller may be liable for fraudulent misrepresentation and may face claims under the Washington Consumer Protection Act (RCW 19.86)
Under Washington law, a seller who knowingly fails to disclose a material defect on Form 17 — particularly one that would have been obvious to someone living in the home — may face liability for fraudulent misrepresentation. Additionally, the Washington Consumer Protection Act (RCW 19.86) applies to deceptive acts in real estate transactions and allows the buyer to seek treble damages and attorney fees. The seller's subjective belief that the defect was 'not a big deal' is not a defense when the defect was material and known.
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Related Concepts
A seller's disclosure statement is a form that sellers complete to inform buyers about the condition and history of the property, including known defects, past repairs, insurance claims, and environmental issues.
Many states and localities have fair housing laws that expand upon the protections offered by the federal Fair Housing Act.
A stigmatized property is one that has an undesirable reputation due to events that occurred on the property or nearby, such as a murder, suicide, alleged haunting, or proximity to a registered sex offender. The stigma is psychological, not physical.
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