Legal Guidance Related to Disclosure in Real Estate and Business Matters
Trusted assistance from a proven New Mexico attorney
Strict rules on disclosure govern New Mexico real estate transactions, and even some business deals can trigger legal problems if the seller is not forthcoming with key information. Tal Young, P.C., located in Albuquerque, has more than 24 years of experience handling matters related to non-disclosure allegations arising from property and commercial transactions. In both types of situations, litigation may ensue when disclosure requirements are not satisfied. I assist my clients in making the proper disclosures and represent their interests zealously in the event of a dispute.
Experienced lawyer outlines what property sellers must disclose
A real estate seller must satisfy the duty to disclose prior to the execution of a purchase contract. The disclosure must address the known condition of the property including possible material defects that affect the parcel’s value. A claim of non-disclosure may arise if key information is omitted when marketing the property, even if the omission is unintentional. As a seasoned real estate litigation attorney, I can evaluate whether a potential problem rises to the level where it must be discussed with the buyer and advocate for your interests if a disagreement occurs about who is responsible for damages related to the purported real estate nondisclosure.
Duty to speak goes beyond the New Mexico Uniform Residential Disclosure Statement
In addition to completing a New Mexico Uniform Residential Disclosure Statement, a home seller must provide the purchaser with property tax information from the county assessor. The listing broker typically provides this information but it is the seller’s duty to do so.
Realtors also have a duty to disclose defects in the property. They are deemed to have knowledge beyond the scope of the average purchaser and, therefore, are held to a high standard of care. Under common law, a seller’s agent must disclose discoverable defects on the premises of which they know or should know. The rationale for this duty is that the realtor’s description is relied on by both brokers and prospective buyers.
A broker’s failure to disclose a defect of which the broker had actual knowledge is a breach of their fiduciary duty. In addition, liability may be imposed for providing false information when guiding others if such information is justifiably relied on. Further, a broker must exercise reasonable care or competence in obtaining or communicating information regarding the property, including investigating information provided by the seller or the marketing material associated with the property.
If the foregoing disclosure obligations are not met, disputes may arise and damages may result. I counsel my clients on their obligation to provide, or their right to receive, disclosures and provide strong representation on behalf of clients who have suffered a loss or been accused of misconduct.
Firm advises on financial transparency requirements in business deals
Business transactions involving nonpublic companies are not subject to the same types of disclosure requirements as real estate deals, but a seller can still be held liable if something goes wrong. The New Mexico Supreme Court has held that with respect to business dealings, commercial negotiations and similar relationships, a duty to speak might exist when one side has information that should be shared to put the parties on an equal footing. This situation sometimes arises when one business accuses another of withholding key information on a financial statement. My firm has substantial experience regarding disclosure matters that arise during a sale and handles compliance concerns as well as litigation stemming from charges of “fraudulent silence.”
Contact a knowledgeable New Mexico attorney to discuss a disclosure issue
Tal Young, P.C. advises clients on disclosure issues that arise during real estate and business transactions and represents parties in related disputes. Please call 505-247-0007 or contact me online to schedule a free initial consultation.