The plaintiff purchased a home from the defendants.
Prior to the sale, the defendants completed a Seller Property Information Statement (SPIS) indicating there were no water or moisture problems, no flooding, and no roof leakage.
In reality, the property had a high water table requiring constant sump pump maintenance, a history of basement flooding, a failing septic system, and a leaking skylight.
The plaintiff sued for fraudulent and negligent misrepresentation.
The court found the defendants liable for negligent misrepresentation, as the statements in the SPIS were untrue and the plaintiff reasonably relied on them.
The court awarded damages for remedial work and inconvenience.
The defendants brought a third-party claim against their real estate agent, who had advised them that "fixed" problems did not need to be disclosed.
The court found the agent negligent and ordered the third parties to indemnify the defendants for the damages related to the sump pump issues.
