Failure to Disclose : Public works

Florida
Failure to Disclose : Public works

Three weeks after a home goes under contract a public utilities announces that they have selected the proposed placement for new high-tension lines. The placement is in close enough proximity to the property that if carried out could affect the properties valuation. Buyer announces intention to withdraw from contract because the utility expansion will affect the material value of the property. The buyer also asserts concerns for health and aesthetics. Buyer charges that neither seller nor seller's agent did not disclose planned utility expansion.

Bear in mind that the utility project is proposed and not finalised. If the project should be approved it would commence ~14months after closing. Utility announced planned route after contract, but before closing date. The property is in a gated community and upon inquiry HOA was only aware of the project by the recent newspaper announcement. Seller is elderly and does not recall ever having seen a notice of the proposed project. Buyer became aware of the proposed project from a newspaper article.

Buyer wants full refund of 20,000 held in escrow. Seller is willing to dissolve the contract if a portion of the escrowed amount is forfeited and accusations of dishonesty vis a vis the disclosure are formally recanted.

In addition to being interested in the wise course of action for buyer or seller, my interest is to what extent is a seller responsible for knowing local public works projects that are in the planning stages?

[HomeGuru]

Originally Posted by nyamuk

Florida
Failure to Disclose : Public works

Three weeks after a home goes under contract a public utilities announces that they have selected the proposed placement for new high-tension lines. The placement is in close enough proximity to the property that if carried out could affect the properties valuation. Buyer announces intention to withdraw from contract because the utility expansion will affect the material value of the property. The buyer also asserts concerns for health and aesthetics. Buyer charges that neither seller nor seller's agent did not disclose planned utility expansion.

Bear in mind that the utility project is proposed and not finalised. If the project should be approved it would commence ~14months after closing. Utility announced planned route after contract, but before closing date. The property is in a gated community and upon inquiry HOA was only aware of the project by the recent newspaper announcement. Seller is elderly and does not recall ever having seen a notice of the proposed project. Buyer became aware of the proposed project from a newspaper article.

Buyer wants full refund of 20,000 held in escrow. Seller is willing to dissolve the contract if a portion of the escrowed amount is forfeited and accusations of dishonesty vis a vis the disclosure are formally recanted.

In addition to being interested in the wise course of action for buyer or seller, my interest is to what extent is a seller responsible for knowing local public works projects that are in the planning stages?

**A: Instruct teh Seller to refund the earnest money and get a mutual release signed by all parties, including the real estate brokerage companies.