In New York, the doctrine of caveat emptor — “let the buyer beware” — remains an important principle in residential real estate transactions. Unlike many other states that require extensive seller disclosures, New York adheres to a more traditional approach: absent fraud, active concealment, or a special relationship, a seller has no general duty to volunteer information about defective conditions in the property.

As readers of this Blog know, a “cause of action to recover damages for fraudulent misrepresentation requires a misrepresentation or a material omission of fact which was false and known to be false by defendant, made for the purpose of inducing the other party to rely upon it, justifiable reliance of the other party on the misrepresentation or material omission, and injury.”