Stambovsky v. Ackley Questions and
Answers
Rule of Law - answer A condition created by a seller that decreases the value of a
home, and is unlikely to be discovered by the buyer, must be disclosed by the seller.
Stambovsky - plaintiff - entered into a contract for the purchase of a home in Nyack,
New York, with Ackley - defendant. Unbeknownst to Stambovsky, Ackley had held the
house out to the public as a haunted house. - answer An article had been written
about the home in Reader's Digest, and the home was included on a haunted homes
tour of Nyack.
Ackley did not disclose these facts to Stambovsky during their negotiations. - answer
Upon learning that the home was haunted, Stambovsky brought this action to rescind
the sales contract for the home.
The trial court dismissed the complaint, stating that no remedy at law was available. -
answer Stambovsky then appealed to the First Department.
Issue - answer Does a seller have a duty to disclose to buyer the existence of a
condition created by the seller that decreases the value of a home, and is unlikely to be
discovered by the buyer?
Holding and Reasoning - answer Yes. Stambovsky's complaint must be reinstated
because Ackley had a duty to disclose the fact that he had held the home out as a
haunted home.
A condition created by a seller that decreases the value of a home, and is unlikely to be
discovered by the buyer, must be disclosed by the seller. - answer In this case,
Ackley held the home out to the public as a haunted house, thus having the potential to
decrease its value.
Since this is a condition that a buyer should not be expected to consider prior to
purchasing a home, Ackley had a duty to disclose this fact prior to entering into a
contract for the home's sale. - answer Therefore, Stambovsky's complaint should be
reinstated because he has a remedy at law for Ackley's breach.
Answers
Rule of Law - answer A condition created by a seller that decreases the value of a
home, and is unlikely to be discovered by the buyer, must be disclosed by the seller.
Stambovsky - plaintiff - entered into a contract for the purchase of a home in Nyack,
New York, with Ackley - defendant. Unbeknownst to Stambovsky, Ackley had held the
house out to the public as a haunted house. - answer An article had been written
about the home in Reader's Digest, and the home was included on a haunted homes
tour of Nyack.
Ackley did not disclose these facts to Stambovsky during their negotiations. - answer
Upon learning that the home was haunted, Stambovsky brought this action to rescind
the sales contract for the home.
The trial court dismissed the complaint, stating that no remedy at law was available. -
answer Stambovsky then appealed to the First Department.
Issue - answer Does a seller have a duty to disclose to buyer the existence of a
condition created by the seller that decreases the value of a home, and is unlikely to be
discovered by the buyer?
Holding and Reasoning - answer Yes. Stambovsky's complaint must be reinstated
because Ackley had a duty to disclose the fact that he had held the home out as a
haunted home.
A condition created by a seller that decreases the value of a home, and is unlikely to be
discovered by the buyer, must be disclosed by the seller. - answer In this case,
Ackley held the home out to the public as a haunted house, thus having the potential to
decrease its value.
Since this is a condition that a buyer should not be expected to consider prior to
purchasing a home, Ackley had a duty to disclose this fact prior to entering into a
contract for the home's sale. - answer Therefore, Stambovsky's complaint should be
reinstated because he has a remedy at law for Ackley's breach.
