James owned real estate.He leased the building to two tenants.An insurance agent leased the first floor and a law firm leased the second floor.James later sold the land to Mary,who used the entire building for her business.She discovered that there were underground storage tanks buried in the land.She had to remove the tanks and then sued James and the former tenants for the cost of removing the tanks,even though none of them knew the tanks had been there.

Question

Quizplus · Accepted Answer

Since Mary purchased the land and discovered the tanks after the sale, she may sue James for the cost of removing the tanks under the legal principle of implied warranty of habitability. This warranty assures that the property is suitable for occupancy, and extends to all latent defects that the seller should have been aware of. The tenants, on the other hand, were not property owners so they cannot be liable for the underground tanks.

James Owned Real Estate