Unreported Hidden Easement at the Time of Sale: Right to Compensation!
Homebuyers discovered that the basement of their property contained an underground pipe—part of the public sewer system—which prevented them from carrying out the expansion work on their property as they had originally planned. Dissatisfied, they sued the sellers for compensation for their losses. However, the court dismissed their claim on the grounds, first, that the purchase of the lot had not been contingent on the buyers’ ability to carry out expansion work, and, second, that the hidden easement did not meet the materiality threshold required by law to justify termination of the contract or compensation equivalent to the resulting decrease in the land’s value. Upon review of the dispute, the Court of Cassation overturned this decision, noting that in the case of a hidden easement not disclosed during a real estate sale, the principle of awarding the aggrieved purchaser simple damages is not contingent upon prior demonstration of the severity of that hidden easement for the purchaser.
