311 Mass. 677, 678-679, 42 N.E.2d 808, 141 A.L.R. 965
On or about September 12, 1938, the defendant sold the plaintiff a house in Newton to be occupied by the plaintiff and his family as a dwelling.1 At the time of the sale the house was infested with termites, an insect that is most dangerous and destructive to buildings, and the plaintiff could not readily observe this condition upon inspection.2
The defendant knew the internal destruction that these insects were creating in the house but concealed from the plaintiff its true condition.3 The plaintiff at the time of his purchase had no knowledge of the termites and exercised due care thereafter.4
The plaintiff learned of the termites about August 30, 1940.5 Because of the destruction that was being done and the dangerous condition that was being created by the termites, the plaintiff was put to great expense for repairs and for the installation of termite control.6 These steps were necessary to prevent the loss and destruction of the house.7
Whether the seller of a house is liable for fraud or deceit when it knows of but fails to disclose a termite infestation that is not readily observable by the buyer upon inspection?8
No. The established facts show that on or about September 12, 1938, the defendant sold the plaintiff a house in Newton knowing of the termite infestation but made no false statement or representation and took no steps to prevent the plaintiff from acquiring information about the condition.11 The established facts further show that the parties dealt at arm's length with no fiduciary relation between them.12 The plaintiff had no knowledge of the termites at the time of purchase.13 Therefore, the defendant's mere failure to reveal the infestation does not constitute fraud or deceit.14
The seller is not liable for fraud or deceit.15