News & Information: ORRA BrokerWise

Brokers must disclose property contamination

Thursday, December 6, 2012  
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A Michigan court has considered whether a listing broker had a duty to disclose to buyers that a property had a chemical contamination problem when the property’s marketing materials represented that the pollution had been remediated, and confirmed a lower court decision that the broker was obligated to disclose the contamination.

Frank and Tonya Alfieri ("buyers”) entered into an agreement to purchase a condominium built in an abandoned factory that had a history of trichloroethylene contamination ("contamination”). During the building of the condos, the developer had installed a vapor barrier because of the Contamination but the property was never properly remediated. Newspaper articles and the development’s marketing materials suggested that the property was no longer contaminated.

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