Purchasers of a residential property sued the vendors over an undersized septic system, alleged misrepresentations about a loft apartment, water issues, a retaining wall defect, and a sprinkler system.
The court held that the vendors breached the agreement of purchase and sale and committed civil fraud by marketing the property as including a habitable loft apartment while installing or procuring approval for a septic system that was inadequate for the property as marketed.
The court found the vendors could not rely on caveat emptor or lack of due diligence in relation to that fraud, but rejected the claims for lost rental income, well water damages, plumbing damages, and sprinkler damages.
Damages were awarded for the cost of replacing the septic system and repairing the retaining wall, plus pre-judgment interest.
