A couple purchased an apartment in a condominium with structural defects, which led to the collapse of a support column and the declaration of the building as a dangerous structure, shortly after handing over possession of the apartment. The sellers did not know about the structural defects, as the apartment was rented all these years and they did not visit the place.
The Court accepted the claim and obliged the sellers to pay damages to the purchasers, because they could have known about the structural defects. A seller owes a duty of disclosure to a purchaser for any discrepancy arising from material facts that the seller knew or should have known about at the time of the conclusion of the contract and did not disclose them to the purchaser. Giving a statement about the condition of the apartment without the seller having checked the condition of the apartment at all, constitutes negligence and a breach of the duty of disclosure. Here, the sellers stated in the agreement that the apartment has no defects and/or hidden defects that were known to them and were not disclosed to the purchaser, and undertook to hand over possession of the apartment when it is in good condition. The sellers did not know about the structural defects in the building that led to the building being declared a dangerous structure. However, they were aware that in the past each apartment was required to pay for the reinforcement of a support column. Although this is a substantial matter, which required a deeper examination of the reason for which the payment was required, the sellers did not bother to check or find out the condition of the apartment and the building before the signing date. Therefore, the sellers were negligent, breached the duty of disclosure towards the purchasers and will therefore compensate them.