The purchaser of a residential property brought a motion for summary judgment alleging negligent misrepresentation based on statements in a Seller Property Information Statement (SPIS) that denied prior flooding, structural issues, and moisture problems.
Shortly after closing, significant basement leakage and structural defects were discovered.
The court reviewed jurisprudence regarding the legal effect of SPIS disclosures and the limits of the doctrine of caveat emptor once a vendor elects to provide such a statement.
Although the purchaser demonstrated a strong prima facie case, the court held that key factual disputes regarding the extent and cause of the leakage, the visibility of defects, and the appropriate scope of repairs required viva voce evidence.
The purchaser’s motion for summary judgment was dismissed, while the claim against one defendant was dismissed on consent because she did not sign the SPIS.
