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02/26/76 RAMOS v. HOLMBERG

February 26, 1976

RAMOS
v.
HOLMBERG



Appeal from Ingham, Jack W. Warren, J.

McGregor, P. J., and D. E. Holbrook, Jr. and M. J. Kelly, JJ. McGregor, P. J., concurred. M. J. Kelly, J. (dissenting).

SYLLABUS BY THE COURT

Opinion of the Court

1. Mortgages -- Duty of Mortgagee -- Defects in Property.

No duty is imposed upon a mortgagee to disclose material defects in property being sold by the mortgagor.

2. Vendor and Purchaser -- Land Contracts -- Sale of Vendee's Interest -- Defects in Property -- Liability of Vendor.

A land contract vendor is not a necessary party to a sale of the vendee's interest, and even when the vendor enters into the transaction it is not necessary that he know the condition of the property; therefore a land contract vendor is generally not held liable for defects in property sold by his vendee.

3. Vendor and Purchaser -- Land Contracts -- Sale of Vendee's Interest -- Defects in Property -- Duty of Vendor -- Obligation to Disclose.

A land contract vendor who has actual knowledge of defective conditions of the property may be held responsible for such defects to a purchaser of the vendee's interest if he has an obligation to disclose the information that he has; such obligation arises if the vendor takes an active part in the negotiations leading to the sale of the vendee's interest or if the vendor does not truthfully answer an inquiry from the purchaser as to the condition of the premises.

4. Vendor and Purchaser -- Land Contracts -- Warranties -- Implied Warranty of Habitability -- Opportunity to Eliminate Dangers.

An implied warranty of habitability cannot be used to hold a land contract vendor liable to a purchaser of the land contract vendee's interest in a home for defects in the premises where the house was in possession of the vendee and for that reason the vendor had no opportunity to eliminate the dangerous conditions.

5. Appeal and Error -- Judgment -- Summary Judgment -- Pleadings -- Allegations.

The Court of Appeals, when determining if summary judgment was properly granted to a defendant, looks only at the pleadings and considers as true every well-pleaded allegation contained in the plaintiff's complaint.

6. Vendor and Purchaser -- Land Contracts -- Judgment -- Summary Judgment -- Defects in Property.

Summary judgment for failure to state a claim upon which relief can be granted was properly granted in favor of a land contract vendor where the plaintiff, a purchaser of the land contract vendee's interest in a defective house, failed to allege in his complaint either that plaintiff had questioned the vendor about the condition of the house or that ...


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