Should the seller’s agent disclose that the seller is her brother?

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Should the seller’s agent disclose that the seller is her brother?

After we have bought a home with hidden defects, it turned out that the seller is the brother of selling agent, which they failed to disclose prior to closing. Should the seller’s agent disclose the relationship to the seller? Do any of them brother or sister have any responsibility for the damage caused by hidden

defects immediately after moving in?

Asked on January 30, 2018 under Real Estate Law, Ohio

Answers:

S.L,. Member, California Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

To avoid the appearance of any conflict of interest, the seller and seller's agent should have disclosed that they are siblings.
As for the hidden defects, you can sue the seller for fraud.  Fraud is the intentional misrepresentation or nondisclosure of a material fact made with knowledge of its falsity and with the intent to induce your reliance upon which you justifiably relied to your detriment.
In other words, you would not have bought the house had you known of the hidden defects.
Your damages (monetary compensation in a lawsuit) for fraud would be either the benefit of the bargain or your out of pocket loss.
Benefit of the bargain means a defrauded purchaser may recover the difference between the real and represented value of the property purchased regardless of the fact that the actual loss suffered might have been less.
Out of pocket determination of damages for fraudulent misrepresentation permits recovery of the difference between the price paid and actual value of the property acquired.


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