Termites did not undermine sale

The New South Wales Court of Appeal decision of Wood v Balfour [2011] NSWCA 382 presents an interesting factual matrix relating to the obligation of a seller to disclose significant latent defects in quality of title to a buyer, in this instance, severe termite damage. It offers insights into the difficulty of a buyer proving the existence of the element of deceit in the making of a representation with respect to quality and reinforces the importance of the rule caveat emptor as being an article of faith for every buyer of real estate.