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Updated Feb 22, 2014 - 8:39 am

Court rules on Scottsdale sex offender real estate issue

PHOENIX — A state appellate court says Arizona law bars lawsuits against
home sellers who don’t disclose that a sex offender lives next door, but the
ruling also says providing a false reason for selling is another story.

The ruling revives a fraud claim against the sellers of a Scottsdale home. The
sellers had told the buyers that they were selling because they wanted to be
closer to friends. However, their real reason allegedly was the sex offender
next door.

A trial judge dismissed the entire suit, and the Court of Appeals’ recent rules
agreed with dismissing a claim of negligent misrepresentation.

However, the ruling said the buyers’ fraud claim can proceed because it’s up to
a jury to decide whether the buyers relied on the sellers’ allegedly false
statement.

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