A lessee of a property demanded compensation from the apartment owner after it was revealed to him, six months after the signing of the lease agreement, that preparations for construction work began in the building for the purpose of a TAMA 38 project and after he had to leave the apartment because of it. The apartment owner argued that the liability lies with the realtor who should have disclosed the data.
The Court held that the fact that a building is expected to carry out a TAMA 38 project is a significant issue that must be disclosed in advance to the lessee. A landlord cannot shake off the responsibility on the grounds that the realtor should have disclosed it. A realtor is the agent of the landlord and the responsibility for the non-disclosure regarding the upcoming construction project is on the landlord who can file a claim against the realtor if he believes that he is responsible. The Court accepted the claim and awarded the lessee compensation for damage caused as a result of the transition to a new apartment.