Under what circumstance can a seller be liable for false statements after closing?

A seller can be liable for false statements after closing if the seller knowingly made a false statement. This principle is rooted in the notions of fraud and misrepresentation in real estate transactions. If a seller intentionally misleads a buyer about a material fact related to the property, such as the condition of the home or the existence of defects, the seller can be held accountable even after the sale has been finalized.

This liability stems from the responsibility to act in good faith and to provide accurate representations of the property. The seller's knowledge signifies intent, which is crucial in establishing fraud. If the seller was aware that their statement was untrue, the buyer has grounds to pursue legal action for any damages resulting from reliance on that falsehood.

Options that suggest buyer actions, such as discovering defects first or failing to complete a home inspection, do not create seller liability in this context. Similarly, mere verbal disclosure of a defect does not necessarily imply knowledge of its falsehood. Therefore, the acknowledgment of deliberate falsehood by the seller is fundamental in establishing liability for post-closing disclosures.