Strawn v. Canuso: New Jersey Supreme Court Finds Developer and Broker Liable for Failure to Disclose Known, Undesireable Off-Site Environmental Conditions

The New Jersey Supreme Court addressed the duty of disclosure owed by a builder of homes and the brokers who marketed the homes which were located near, but not on, a hazardous waste disposal facility. The court held that a builder-developer of residential real estate and a broker representing him were liable for non-disclosure of known, off-site physical conditions which were unknown to, and not readily observable by, the buyer, if the existence of the conditions was material to the habitablility, use, or enjoyment of the property (and, thus, might make the property less desirable or valuable to an objectively reasonable buyer). The knowledge of the builder or broker and the materiality of the condition were fact issues in each case. The extent to which this result applied to brokers of existing residential housing was not addressed and is, therefore, uncertain.

Strawn v. Canuso, 140 N.J. 43, 657 A.2d 420 (1995).

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