Jeminson v. Montgomery Real Estate and Co.
Michigan Court of Appeals
210 N.W.2d 10 (1973)
Jeminson (plaintiff) agreed to buy a Detroit home from Montgomery Real Estate (defendant) under an FHA-insured mortgage program, borrowing the purchase price from Michigan Mortgage Corporation (Michigan) (defendant). After moving in, Jeminson discovered the house was uninhabitable, abandoned it, and Michigan foreclosed. Jeminson sued both defendants, claiming Montgomery fraudulently misrepresented the home's condition and value and that Michigan, as mortgagee, had a duty to protect her from Montgomery's deceptive practices. The trial court granted Michigan summary judgment, and Jeminson appealed.
Whether a mortgage company has a duty to protect a borrower from deceptive practices used by a real estate company involved in the same transaction.