brokers have duty to investigate to determine material facts that should be known to him; do not have to allege or prove that broker had actual knowledge (majority view)
seller must have actual knowledge, purchaser doesn’t know, and defect is material (NY has weird exception that depends on whether the seller created the defect) (Stambovsky ghost case where even "most meticulous" search could not have uncovered the defect that affects value of home)
-implied warranty is largely replacing caveat emptor--building is built in a workmanlike manner and suitable for habitation; imposes burden of repairing latent defect on the person who can notice, avoid, or correct the defect during the construction process
- express warranty-
- a. to be an express warranty, must be an unequivocal statement concerning the thing sold. The buyer understands this to be an assertion and not an opinion.
- b.when there are express warranties in the contrat, they must also be merged (reflected) in the deed, otherwise they are extinguished when the deed is conveyed