Legal News Alert #115

Purchasers Can Sue Sellers for Leaky Roof

The Michigan Court of Appeals has ruled that the purchasers of a home with leaking skylights can proceed to a jury trial even though the Sellers' Disclosure Statement stated that there had been problems with the roof leaking and even though the Purchasers had a private home inspection prior to the closing which did not find the roof to be leaking.

In Bergen v. Baker, the trial court judge ruled that in light of the Sellers' Disclosure Statement and the private inspection conducted before the closing, the Sellers were entitled to summary disposition because the Purchasers had been given reasonable notice about the leaky roof. The Court of Appeals disagreed and remanded the case back to the trial court for a jury trial.

The Court of Appeals found that although the Sellers disclosed that there had been problems with the roof leaking in the past, the Sellers said nothing about any current roof problems. On the contrary, the Sellers said that "a complete tear off and replacement" of the roof had been completed in 1998 and that the problems were "completely rectified with the new roof."

Furthermore, although the home inspector found evidence of "past leakage," he did not find evidence of an active leak. The Sellers also failed to mention that repairs to the skylights had been done in 1999, one year after the new roof was installed.

As a result of all of the above, the Court of Appeals ruled that there were "questions of fact" which could not be decided by a judge as a matter of law and that the case needed to be presented to a jury.

We at Nichols & Eberth believe that the impact of this case is that Sellers need to be very complete in disclosing all conditions pertaining to the property including all repairs or attempts to repair. In addition, the Sellers should not think that because the Purchasers have had their own private home inspection conducted, they are off the hook when it comes to liability.

Also, we have found that with many home sales, the Sellers' Disclosure Statement is very casually filled out by the Sellers or the real estate agent without the Sellers fully recognizing the liability that they may incur if the Statement is incomplete and/or inaccurate. If you are contemplating selling your home, we recommend that you have your Sellers' Disclosure Statement reviewed by an attorney before you give it to the Purchasers.

NICHOLS & EBERTH, P.C.
22374 Garrison, Dearborn, MI 48124

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