Question

In: Operations Management

3. Henry and Ella have spent months looking for their dream home. One day the saw...

3. Henry and Ella have spent months looking for their dream home. One day the saw it and fell in love with everything about the house. They asked the Mr. Sellers, the realtor to draw up a purchase agreement, which they signed. Before signing the agreement, they asked if the house was in good shape. The real estate associate replied that it was. They signed the papers at the closing.

After moving into the house, Henry and Ella soon discovered that the roof leaked badly, each time it rained the basement flooded, the air conditioner didn't’t work and the electrical wiring was prone to short out! They now want to sue Mr. Sellers.

a. What tort should they consider?

b. If they pursue a lawsuit would they win?

c. What are the possible defenses to the lawsuit that Mr. Sellers might use?

Solutions

Expert Solution

a. They need to file a complaint against the seller that he did not aware about latent defect to them. Henry & Ella have to claim about these latent defect like Roof leak & basement flooded. Because when any buyer purchase new house so it become difficult to identify these defects.

b. They will win If it is suspected that Mr. Seller has done all these activity deliberately. But Most of the seller aware about these latent defect so it is possible at some extent that he will found guilty for this. Henry & Ella should need to proof that Mr. Seller was aware about these defects than only he would found guilty.

c. Mr. Seller should claim that once the property transfer to buyer account it can be possible that problem created through buyer while using these property. Mr. Seller can submit his inspection report that would reflect that initially all checkpoint was inspected before transfer the property.


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