Hill v. Jones

• Mr. & Mrs. Jones = sellers of a home = defendants = "Jones"
• Mr. & Mrs. Hill = buyers = plaintiffs = Hill = they agreed to purchase the residence of Mr. & Mrs. Jones (sellers).
• Jones told Hills that they are only water damage at a single spot in the home.
• Termite inspection revealed no infestation.
• Hill bought the house for $72,000 (home prices were lower in the 1980s).
• After moving in, Hill discovered major termite damage.

Hill sued Jones.

Jones won a summary judgment in the trial court.

Does a seller of residential property have a duty to disclose to the buyer material facts that affect the value of the property?

Hill argued that Jones had failed to disclose the termite damages

Yes. The seller (Jones) does have a duty to disclose this material fact.

Reversed the summary judgment. Case remanded for trial

Disclosure of a material fact will prevent false representation of facts.