Seller's Liability for Undisclosed Administrative Property Restriction

A purchaser of an immovable property, having paid the full price, filed a suit against the seller seeking rescission of the sale and damages, alleging that the seller had failed to disclose a building restriction imposed by administrative decree, which significantly decreased the property's value, thereby constituting a latent defect covered by the warranty against eviction. The court of appeal upheld the trial court's dismissal of the claim, reasoning that the seller had no obligation to disclose a public planning restriction that was publicly accessible, meaning the buyer should have discovered it through due diligence. The highest court overturned the lower court's decision, ruling that the administrative restriction constituted a latent defect that materially diminished the property's utility and value, and therefore, the seller breached the implied warranty against encumbrances, regardless of the public nature of the restriction, thus justifying rescission and damages.