Hellmuth & Johnson attorney Brenda Sauro recently secured a $276,000 arbitration award on behalf of the firm’s home buyer clients in a dispute involving the failure of sellers and real estate agents to fully disclose material information regarding moisture testing and subsequent repairs to a property.
The dispute arose after the buyers discovered that the results of a moisture test and the limitations of subsequent repairs had not been fully disclosed during the purchase process. The buyers were represented by real estate agents in a dual agency arrangement. Although one agent possessed the moisture testing report, the agent provided only a summary in an addendum rather than the complete report. Additionally, the buyers’ agent failed to obtain requested repair records.
Following arbitration, the panel determined that the sellers and real estate agents had failed to meet their disclosure obligations and apportioned responsibility among the parties. The sellers and selling agent were each assigned 30% of the fault, while the buyers’ agent was assigned 20% for failing to follow up on the buyers’ request for additional documentation. The panel also assigned 20% responsibility to the buyers for not pursuing the requested information further.
The decision underscores the importance of transparency in real estate transactions, particularly when disclosing property conditions, inspection findings, and repair histories. It also highlights the responsibilities of real estate professionals to provide complete and accurate information to their clients.
Prior to arbitration, neither the sellers nor the real estate agents admitted fault or offered compensation to the buyers.