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How long does an obligation in the
Agreement of Sale last?
A rider in an agreement of sale
stated that the seller warrants that the
premises are free from termites or
damage therefrom. The seller
provided an inspection report to the
buyer prior to closing, as the agreement
required, stating there was no termite
infestation nor damage. A report
qualification was included that the
inspector was unable to access the
entire house. After
closing, the buyer discovered termite
infestation, apparently in an area that
would have been inaccessible to the
inspector. The buyer brought a claim in
breach of contract and sought damages
for failure to discover and disclose the
termite infestation.
The court found that the language of
the contract clearly imposed upon the
seller the duty to conduct and pay for
the inspection and forward the results
to the buyer; but did not evidence a
warranty that would survive the closing.
The warranty, in the view of the court,
unambiguously was limited to the
seller’s duty to correct any damage
discovered in the pre-closing
inspection, there was no post closing
agreement as to infestation.
Consequently, summary judgment was for
the seller.
Link v. Breen, 649 N.E.
2d 126 (Ind. APP. 2d Dist. 1995).
Our thanks to Attorney Charles J.
Jacobus, Houston, TX, for providing the
synopsis of this relevant case.
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