In the landmark case of Reed v. King (1983), the California Court of Appeal tackled the issue of whether a seller must disclose that a house was the site of a multiple murder. Dorris Reed purchased a house from Robert King, who, along with his real estate agents, failed to inform her that a woman and her four children had been murdered there ten years prior. Reed only learned about the murders from a neighbor after the purchase. She sued for rescission and damages, claiming the non-disclosure affected the property’s market value and desirability.
The court reversed the initial judgment, which had dismissed Reed’s complaint. It emphasized that sellers must disclose facts materially affecting the value or desirability of the property, especially if such facts are not readily observable by …
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