The seller's liability for non-disclosure of nearby construction projects: what does the law say?
Does the seller who does not inform the buyer of neighbouring construction projects engage his responsibility?
In real estate sales, the seller is required to disclose to the buyer all relevant information concerning the property he owns. If the seller deliberately fails to disclose to the buyer information that he knows is essential for the buyer's purchase decision, he may be held liable.
The buyer can then file a complaint against the seller citing a lack of consent. The courts have held that the concealment of a real estate project by the seller constitutes such a defect. If the seller is aware of nearby construction projects and does not report them to the buyer, his liability may be engaged, provided that this information was crucial for the purchase decision.
Consequently, the buyer may request the cancellation of the sale and/or damages if he is able to demonstrate that:
The buyer has five years from the discovery of the problem to initiate legal proceedings. However, proving the seller's intent and the effect of concealment on the buyer's consent can be complicated.
If the transaction was carried out via a real estate agent and the latter did not inform the buyer either, his liability may also be engaged. According to the courts, a real estate agent who does not disclose nearby construction projects to his clients is failing in his duty to inform and advise.
Sources:
Articles 1137 et seq. of the Civil Code
Cass, 1st civ, September 10, 2013, n°12-23626
Cass, 3rd civ, 20 December 1995, n°94-14.887
The buyer can then file a complaint against the seller citing a lack of consent. The courts have held that the concealment of a real estate project by the seller constitutes such a defect. If the seller is aware of nearby construction projects and does not report them to the buyer, his liability may be engaged, provided that this information was crucial for the purchase decision.
Consequently, the buyer may request the cancellation of the sale and/or damages if he is able to demonstrate that:
- The problem existed before the sale
- He was not aware of it before the purchase
- And that the seller knew about it
The buyer has five years from the discovery of the problem to initiate legal proceedings. However, proving the seller's intent and the effect of concealment on the buyer's consent can be complicated.
If the transaction was carried out via a real estate agent and the latter did not inform the buyer either, his liability may also be engaged. According to the courts, a real estate agent who does not disclose nearby construction projects to his clients is failing in his duty to inform and advise.
Sources:
Articles 1137 et seq. of the Civil Code
Cass, 1st civ, September 10, 2013, n°12-23626
Cass, 3rd civ, 20 December 1995, n°94-14.887
Posted on 24/07/2023 by
Cyril POTTIER
Entrepreneur and founder of the agency GABRIEL FRANCE, my career began in the field of accounting, but my passion for real estate led me to this captivating adventure. With GABRIEL FRANCE, we bring our expertise to every stage of real estate, from purchase to sale, including rental management. Through each transaction, our goal is simple: to ensure your satisfaction.
