Environmental Exposures and Lender Concerns

Auction of Property-Buyer Alleges Bank Liability (Lusk v. First Century Bank) (Cont.) Purchasers sued bank arguing reliance on bank/auctioneer assertion that property was clean Also argued bank was seller of real estate and had an affirmative duty to disclose latent defects/therefore fraud Virginia Court found foreclosure deed did not constitute such a relationship and therefore no duty of good faith and fair dealing Court rejected argument that a secured party at a foreclosure sale was under a duty to make affirmative representation about conditions (therefore bank cannot be negligent) 40

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