Listing Agent Must Disclose Letter from Neighbor’s Counsel as to Potential Infringement to the Buyer
FACTS:
Ten days before escrow was scheduled to close, the seller received a letter from a lawyer representing the neighbor. The lawyer’s letter claims that several trees that straddle the property line are a nuisance and that the neighbor is going to remove them at his expense.
ISSUE:
Should the listing agent disclose to the potential buyer the letter from the neighbor’s attorney?
ANSWER:
Yes.
DISCUSSION:
Real estate licensees are obligated to disclose all known material facts affecting the property. Here, the attorney’s letter and the alleged nuisance would constitute material facts which should be disclosed.