Questions and Answers
What does the Rule of Law pertain to in real estate transactions?
Who was the plaintiff in the case Stambovsky v. Ackley?
Stambovsky
What did Ackley fail to disclose to Stambovsky?
That the home was haunted
The trial court agreed with Stambovsky's complaint regarding the haunted house.
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What was the outcome after Stambovsky appealed?
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A seller has no duty to disclose conditions that a buyer should consider before purchasing a home.
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The condition created by a seller that decreases the value of a home, and is unlikely to be discovered by the buyer, must be disclosed by the __________.
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What promotional materials did Ackley use to portray the home?
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Study Notes
Rule of Law
- Sellers must disclose any conditions that reduce a home's value and are unlikely to be discovered by the buyer.
Case Background
- Stambovsky (plaintiff) contracted to buy a house in Nyack, NY, from Ackley (defendant).
- Ackley promoted the house as haunted without informing Stambovsky.
- The property was featured in Reader's Digest and on a haunted homes tour.
Non-disclosure
- Ackley failed to inform Stambovsky about the haunted status during negotiations.
- Upon discovering the haunting, Stambovsky sought to rescind the contract.
Trial Court Decision
- The trial court dismissed Stambovsky's complaint, stating no legal remedy was available.
- Stambovsky appealed this decision to the First Department.
Legal Issue
- The central question was whether a seller has the duty to disclose conditions that lower a property's value and are not easily detectable by the buyer.
Court's Holding and Reasoning
- The court ruled that Stambovsky's complaint was valid and must be reinstated.
- Ackley had a legal obligation to disclose the home's haunted status due to its potential impact on value.
Buyer Expectations
- Buyers should not be expected to anticipate undisclosed conditions when purchasing a property.
- Ackley's non-disclosure constituted a breach, providing Stambovsky with a legal remedy.
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Description
Test your knowledge on the landmark case of Stambovsky v. Ackley with these flashcards. The quiz covers key terms and definitions related to this significant real estate law case. Dive into the nuances of the Rule of Law and its impact on property transactions.
