Atherton Condominium Apartment-Owners Ass'n v. Blume Development Co., 115 Wash. 2d 506 (1990)

Citation: Atherton Condominium Apartment-Owners Ass'n v. Blume Development Co., 115 Wash. 2d 506 (1990)
Parent Document: Atherton Condominium Apartment-Owners Ass'n v. Blume Development Co., 115 Wash. 2d 506 (1990)
Jurisdiction: Washington (state)
Effective Date: 1990-11-01
Original Source: https://www.courtlistener.com/opinion/5106834/atherton-condominium-apartment-... ↗

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Accordingly, a builder-vendor's duty to speak arises in those situations where: there is a concealed defect in the premises of the residential dwelling, the builder-vendor has knowledge of the defect, the defect is dangerous to the property, health or life of the purchaser, and the defect is unknown to the purchaser and a careful, reasonable inspection on the part of the purchaser would not disclose the defect. Obde, at 452-53. In addition, the defect complained of must "substantially affect[] adversely the value of the property or operate [] to materially impair or defeat the purpose of the transaction." Mitchell v. Straith, 40 Wn. App. 405, 411, 698 P.2d 609 (1985). See also Luxon v. Caviezel, 42 Wn. App. 261, 264-65, 710 P.2d 809 (1985). In such a situation, a builder-vendor's failure to inform the purchasers of the defect constitutes fraudulent concealment. Obde, 56 Wn.2d at 452 (duty to inform purchaser of termite condition); Perkins, 179 Wash. at 367 (duty to inform lessee of failure of the drainage system to carry away water during the rainy season); Luxon, 42 Wn. App. at 264-65 (duty to inform purchaser of inadequate septic system); Sorrell v. Young, 6 Wn. App. 220, 225, 491 P.2d 1312 (1971) (duty to inform purchaser that lot was built up to street level with fill).

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