The home buyer,” to his horror, discovered that the house he had recently contracted to purchase was widely reputed to be possessed by poltergeists, reportedly seen by the seller and members of her family on numerous occasions over the last nine years.” He promptly sued the seller and the broker to rescind the contract of sale and recover his damages. The New York Supreme Court, Appellate Division, First Department held that even though New York adheres to the “caveat emptor” (buyer beware) doctrine:
- the seller can not deny the existence of poltergeists on the premises, so the house was haunted as a matter of law;
- the equitable remedy of rescission of the contract was available to the buyer who not being a “local”, could not readily learn that the home is haunted or be familiar with local folklore;
- the seller, having publicized “her close encounters with these spirits which fostered the home’s reputation in the community” through magazine and newspaper articles, had a duty to inform the buyer;
- haunting is not a condition which can be ascertained by a reasonable inspection of the premises;
- the seller could not deliver the home “vacant” as required by the contract; and
- the real estate broker, as agent for the seller, is under no duty to disclose to a potential buyer the ghostly reputation of the premises.
For further information regarding home buyer’s legal rights, see “Free Legal Resources” at WNY-Lawyers.com.