SANJAY DIXIT (Advocate) 21 April 2008

Caveat emptor

Caveat emptor

Caveat emptor is a Latin Phrase which means "Let the buyer beware". Generally caveat emptor is the property law doctrine that controls the sale of real property after the date of closing.

Under the doctrine of caveat emptor, the buyer could not recover from the seller for defects on the property that rendered the property unfit for ordinary purposes. The only exception was if the seller actively concealed latent defects.

Before statutory law, the buyer had no warranty of the quality of goods. In many jurisdictions, the law now requires that goods must be of "merchantable quality". However, this implied warranty can be difficult to enforce, and may not apply to all products. Hence, buyers are still advised to be cautious.

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Shree. ( Advocate.) 22 April 2008

Let the seller beware!!!!!!!!!!!!!!!! Although the old "caveat emptor" law still remains unchanged so far as the buyer is concerned, when your offer to buy a house or property has been accepted, the sellers have to ensure that all of the information they provide to you is correct. Similarly, when selling a house or property the solicitor will ask you to accurately complete, amongst other things, a Seller's Property Information Form (SPIF). The seller should also verify that all the information provided by the seller's agent is accurate. Recent case law has shown that sellers who do not provide accurate information can be ordered to pay damages or to compensate the buyers for any consequential losses resulting from incorrect information given by the seller or anyone acting on the seller's behalf. Incorrect Information Incorrect information or misrepresentation made by the seller can be in the form of incorrect facts that the buyer may come to rely on when entering into the contract to purchase a house or property. In some cases misrepresentation can also result from an innocent remark made by a seller when the proposed buyers come to inspect the property. A buyer who has entered into a contract as a result of a misrepresentation, which has causes loss, can either seek to have the contract rescinded and to place the parties back into the position which they would have been in before they entered the contract (this can be difficult due to permanently fluctuating property prices), or a misled buyer may claim damages. It is important to remember that the amount of damages awarded is at the discretion of the Courts and that it is not always practical or financially viable to rescind property contracts.