Assume the facts of the prior problem. Jay and Gloria knew that the Hyde Park area had

Fantastic news! We've Found the answer you've been seeking!

Question:

Assume the facts of the prior problem. Jay and Gloria knew that the Hyde Park area had been terrorized for the last fifteen years by a rapist. The rapist targeted women who left windows open on summer nights. There had been a rape and an assault reported within six blocks of the home. Hailey, who was moving from Plano, was given a seller disclosure form but it did not mention anything about crime or the break-ins, although both Jay and Gloria knew about the assaults. Assume that the earnest money contract was accepted by Jay, after Hailey moved in she learned about the rapist and the break-ins from some of her neighbors. She felt unsafe and maintained that Jay and Gloria should have disclosed this information. She sued Jay and Gloria for negligent misrepresentation. Jay and Gloria: Are liable because they the information would psychologically affect Hailey. Are liable because the information was material information that any buyer would want to know to make an informed decision to purchase the property. Are not liable because the information has nothing to do with the physical property. Are not liable because the information only psychologically affects the buyer.