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Lawsuit over home's horrific past: buyer beware?

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    Buyers sues sellers, realtor for not disclosing murder-suicide

  • Duration 4:14
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-- -- Yeah there's a reason why we keep -- for doing this.

Kelly's -- is back in session on the docket today are real estate transaction on the house of horror.

Back in 2006.

Janet Milliken and her children were mourning the loss of her husband and decided to move closer to their family.

So they left California for Pennsylvania.

And -- that more than 600000.

Dollars for a home.

But not long after closing a neighbor.

Told -- Milliken about the horrific murder suicide that happened in the home about a year earlier.

-- Milliken was rather shocked so she sued the former homeowners.

Saying they had a duty to disclose the bloody history of the home.

So far too cool courts have ruled against terror.

And now she is seeking a hearing in Pennsylvania's highest court.

Turning now to discuss it mark I collection David -- Cox a former -- -- -- a -- davis' defense dream.

Welcome to you both.

This is unbelievable to me I look at the law the Pennsylvania real estate disclosure law.

The following our material defects which.

Many affect the value of a property would not be defects in the structure of the home.

So you need not disclose.

The existing it's a group home next door claims upon -- Steele -- Information that a crime occurred in the house like a murder suicide.

Information that a sexual predator lives in the neighborhood or for that matter preps -- -- not need to be disclosed -- Now now and you know what if the -- did and my realtor did something I -- I'd -- the real terror.

Under the law legally forget about morally everybody's free to do have -- one.

But legally in this capitalistic society that -- cannot disclose to immediately -- -- for summary judgment.

Because at the realtor disclose the -- -- be violated the law in Pennsylvania as it exists right now.

But secondly the homeowners they don't -- do.

And the reason why they shouldn't this is whole slippery slope argument so murder you have to disclose under some people's theory what about right.

But I burglary how about peeping Tom.

How about that this is near a sewage plant and on -- -- hot humid day you might be able to smell.

What about an ancient Indian burial site close by.

The point is let the buyer beware let the -- do the work you could Google it and would have found out about this murder suicide.

I'm gonna say burglary.

Rape and murder or peeping Tom -- a look inside those windows all I'd like to know all of that before about a half a house David as would -- -- Well the problem is Megan -- issue for the Supreme Court which -- -- hear this -- next is actually whether there's a material defects.

That causes a significant.

Impact in the value of the house and -- -- the backdrop of all this Megan.

This I find disturbing.

The murder happened -- -- six.

That that -- by the home knowing full well the murder suicide for 450000.

Dollars.

They then researched do we have to disclose this to the -- Morgan -- essentially they -- the house.

That they may not out -- I found out advice.

They found out yet I didn't hit bad advice that they don't have to -- then sold it to the new buyers for 6101000.

Dollars.

That's -- in particular I think this is the maturing nicely done there does affect significantly and it -- to the supreme court's gonna find.

This we know.

Comes to buy the house they themselves thought it was relevant information they -- it.

They intentionally chose to cover it up and you're telling me she is out a lock mark.

Legally yes.

Let's that I would want to know not because that I talked about this in my life not because we would have an issue we just want to get a killer deal on the house again pun intended.

The issue is that legally -- the you have to.

Do you have to legally and I've asked around and -- -- on FaceBook -- Twitter most people would want to know what most people say wouldn't -- the house so that means your disclosure.

Will significantly decreased the amount of people willing to bite that arguably the -- Dallas but legally -- -- hold -- over.

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