A contract that purports to sell real property ‘as is’ or in its ‘present condition,’ is nevertheless subject to rescission or monetary damages where the seller fails to disclose or conceals material defects in the property which are actually known or constructively known to the seller, but not readily apparent to the buyer.”) ABDM Props., Ltd. 20, 2015) (“In the context of a real estate sale, a sufficient misrepresentation occurs if the seller fails to disclose on-site defective conditions if those conditions were known to them and unknown and not readily observable by the buyer. Sellers cannot eliminate their disclosure obligations with an “as is” contract clause or a general contract disclaimer. Courts have defined “actual knowledge” to include direct or implied information, and constructive knowledge as an inference that a person “by the exercise of reasonable care could have discovered the dangerous condition.” Black v. Disclosure obligations apply to defects that are actually known or constructively known. 445, 455 (1974) (“Minor conditions which ordinary sellers and purchasers would reasonably disregard as of little or no materiality in the transaction would clearly not call for judicial intervention.”) A fact is material when “it is important to the particular buyer’s decision or when it would be important to a decision made by a reasonable buyer.” Coburn v. Non-disclosure of a defect must be material, not trivial, to support a claim against a seller. 1986) (defining latent as: “hidden, concealed present or existing, but not manifest, exhibited or developed.”) See Ariston Airline & Catering Supply Co. Latency is a quality of anything that is hidden from reasonable observation or inspection, either known only to someone especially familiar with the thing or known to no one at all.” Bouvier Law Dictionary. Latent can be defined as “a quality or condition that is not reasonably apparent by inspection alone. Sellers only must disclose latent defects. Sellers may be liable not only for affirmative misrepresentations, but for silence as well. Deliberate concealment of a “latent defective condition material to the transaction” constitutes sufficient grounds to rescind a contract or award monetary damages to a buyer. Sellers of real estate in New Jersey must disclose defects known to them and unknown and not readily observable to the buyer.
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