The escrow closed, the Buyers were happy. A year later I get a call from the Buyer saying a neighbor had told them there was a violent murder in their garage prior to their occupancy. My daughter lives in this community and the only murder I have been aware of in the town in the past 10 years was a drowning in an upstairs bathtub, many blocks from their home. I call the listing agent, she checks with her Sellers who say they are unaware of any murder in the house. They owned the house for 2 years prior to putting it on the market. I call the police department, it is a small community, 32,000 population, so everyone knows everything. I get a resounding no there was never a murder at that address or on that street. I call my clients and they relax. A few months later I get the same call, only this time there is sleep disturbances, ill health and strange noises in the night. They want to be made whole and it is a declining market...much as the one we are experiencing now. They want my Brokerage to buy the home. I once again call the police department and bingo, there was a violent murder in the garage some 5 years prior to their occupancy. I check the law for the State and time for disclosure has passed. I call my Buyers and tell them that there was indeed a murder and the Brokerage I work for has no legal responsibility for my lack of disclosure and assure them that although the time for disclosure had lapsed I would have, had I known, disclosed the information to them. I offer to sell the home for them. Is there a way to find out accurate information from Government Entities which I am unaware of? Why would a neighbor tell one set of neighbors, living in a crime scene home of the crime and not tell the previous neighbors?
Wow! Shirley, in our state, we aren't allowed to disclose violent death, AIDS or sexual predators even if we are aware of the details.
Anyway, in your case, the listing agent and sellers to your client weren't aware and even the police department on the first inquiry. I don't feel that you have any liability whatsoever. Good luck with a tough situation.