As you settle down in your new home, you start familiarizing yourself with the neighborhood. Then, a neighbor drops a comment insinuating your house’s history involving a homicide. You feel betrayed by the seller’s non-disclosure. While it is completely understandable to feel that way, do you have legal grounds to sue the seller?
What does Arizona state law say about stigmatized property?
In Arizona, you are expected to show due diligence before buying property. Under Arizona’s real estate disclosure law, sellers are not required to voluntarily disclose the following unfortunate events or conditions related to the stigmatized property until explicitly asked:
- A property’s connection to prior criminal activity or felony convictions
- A history of suicide, homicide, or natural death on-site
- Registered sex offenders living nearby
- Former occupants with non-transmissible illnesses, such as HIV/AIDS
The above laws usually grant immunity against civil, criminal or administrative action against a seller for non-disclosure.
What if the seller explicitly lied about the property’s past?
While the refusal to voluntarily disclose information can give immunity to a seller, they are not allowed to lie to or mislead you. For example, if you ask them why they are selling the property in a hurry, they may decline to answer the question straight away or they can give you a fully honest disclosure. However, if they choose to give a vague, misleading, or “poker face” lie to smooth things over, they may face potential fraud or misrepresentation claims.
What are your options here?
You usually have two options. First, if you are still within the standard 10-day inspection period specified in most Arizona purchase contracts, you may have the opportunity to cancel it. Second, if you think the seller lied or misled you, you may file a lawsuit against the seller, asking for rescission and a refund.
Reviewing your rights after purchase
In either case, a thorough analysis of your purchase agreement, written disclosures and correspondence is necessary. It will help in understanding where you stand now and what steps you can take moving forward. An experienced real estate lawyer will prove to be a strategic advantage in this situation.