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Listing Agent May Owe Duty To Plaintiff For Hazards At Foreclosed Property

May 12, 2011

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In Hudson v. The Bank of New York, et. al., the New York Supreme Court, New York
County held that fact issued exist as to whether a listing agent hired by the
bank that took over a property through foreclosure owes a duty to a real estate
agent that was injured due to a stringer that broke on the wooden deck steps in
the rear of the house. While the court recognized that the listing agent would
not face liability unless they create of exacerbated a hazard, the court held
that the deposition testimony and the listing contract demonstrated that factual
issues existed as to the listing agent’s responsibility to inspect, maintain or
repair the property.
The court did, however, grant summary judgment to
both the listing agent and the bank/owner because, the court held, neither party
has notice of the potential hazard. There was no evidence that either party had
actual or constructive notice that there was a problem with the stairs.
Therefore, summary judgment was granted and the case dismissed.
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