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2. Broker has listed the property at 123 Elm St. for sale. It has been vacant for the last three years, according to some,
2. Broker has listed the property at 123 Elm St. for sale. It has been vacant for the last three years, according to some, because of the horrible and sensational murders and suicide that occurred in the house. The property is sold to a young couple from out of town who have three children, ages 9, 6, and 3. Although the broker is well aware of the crimes that occurred inside the house three years ago, broker does not inform the buyers of this information. Two weeks after moving in, the neighborhood welcoming committee visits the new homeowners and recounts the grisly story of the murders and suicide. The new homeowners are appalled and afraid to live in their new house. The buyers sue the broker and seller for fraudulent concealment and misrepresentation, for failing to disclose material information about the events that occurred in the house. Buyers also want to rescind or revoke the contract of sale, and make the seller take back the property and return their money. Did the broker and seller have an affirmative duty to inform the home buyers that there had been terrible crimes committed in the house? Is that material information? Would it matter if the home buyers were a middle-aged couple with no children, rather than a young couple with three children? Should the couple's religious beliefs be of any interest to the court?
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