Ask the Rov: I am selling my used car. Must I disclose all the car’s defects to the buyer?
By Rabbi Chaim Hillel Raskin – Rov of Anash in Petach Tikvah
The Torah warns, “Al tonu ish es achiv” (“Don’t cheat your fellow”), and the Shulchan Aruch rules that it’s forbidden to deceive or mislead people in business dealings. For example, if there is a defect in an item being sold, the seller must inform the buyer.1
A significant defect that would likely have changed the buyer’s mind had he known about it makes it a mekach ta’us (mistaken transaction), and the buyer is entitled to cancel the deal. Even if the defect does not result in monetary loss, hiding it is still prohibited and constitutes deception.2
The definition of a defect depends on local custom.3 In a used car, it is understood that there will be wear and tear, and therefore, minor flaws are not considered defects. However, if the car has a significant problem — such as a faulty engine — the seller is obligated to disclose it. A defect can also be in the car’s history, for example, if it was previously used as a taxi or rental vehicle.
The seller may not rely on the claim that the buyer can inspect the vehicle and discover the defect himself. Remaining silent is considered misleading and is forbidden.4
The buyer is entitled to cancel the sale if he finds a significant fault.5 Yet, if the buyer discovers the defect or had ample opportunity to discover it and continues to use the car, they are considered to have waived their claim and can no longer retract the sale.6 If they continued using it when they had no other choice — for example, if they discovered the problem in the middle of a trip — they may still cancel the transaction.7
As there are many detailed halachos about when the sale can be canceled, one should consult a rov with expertise in this topic.
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From The Weekly Farbrengen by Merkaz Anash
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