Dec
08

Economic Loss Rule

Posted by admin

 

 Mediaeval Russian Door Knocker from Memory

 

  • What if the buyer feels that the home bought has defects that the seller should have known about and didn’t bother to use ordinary care to find out about … and now those defects, e.g., a broken septic system, are going to cost the buyer big money.
  • The infamous “economic loss rule” is a court made rule that says the buyer cannot sue on the real estate contract for seller’s negligent misrepresentation … the “should have known” theory of negligence.
  • The lawyers tell us there are still ways to get around Alejandre v. Bull (no suit for negligent misrepresentation in a real estate contract unless reserve that right - the “economic loss rule.”) Buyer still has some remedies for losses.
    • Rescission of the contract
      Fraudulent concealment
      Consumer Protection Claims
    • Brokers still owes a fiduciary duty so might be a target if the broker’s agent made misrepresentations.
  • Speak with your legal counsel.

 

Thanks for reading our blog.

 

Comments are closed.