Yet another great special article published in the Maryland Daily Record, by Venable’s Kevin L. Shepherd, Esq.: On Real Property - Fraudulent concealment: Scary thoughts for sellers. Read the full article for all the gory details.  

Shepherd writes about a recent decision by the Court of Special Appeals in Rhee v. Highland Development Corp. et al., No, 1765, Sept. Term 2007 (Oct. 7, 2008). In allowing a subsequent purchaser to assert a fraudulent concealment claim against the original developers, with whom no privity exists, the Rhee court has extended the rationale of the decision last year by the Maryland Court of Appeals in Diamond Point Plaza Ltd. Partnership v. Wells Fargo Bank, N.A., 400 Md. 718 (2007). 

The Rhee court’s logical extension of the Diamond Point holding will prevent sellers/developers of real property from profiting from their fraud. Rhee represents yet another expansion of those to whom a seller/developer of real property owes a legal duty.  

BEWARE: Given the continued expansion of liability, sellers/developers need to ensure that they not engage in activity that could in any way be viewed as actively concealing a material fact about the property with the intent to deceive.

Tags: Seller/Developer Liability

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