Buyer With Leaky Basement Can Sue

A Wisconsin man who purchased a flood-prone home in Milwaukee can sue the sellers, the Wisconsin Supreme Court decided.

Chad Novell bought the home in 2003 from family friends. A home inspection at the time of the purchase noted potential problems with water in the basement. But the sellers assured Novell that they had never had water in the nine years they lived there. They also said the cracks in the walls hadn’t moved and they hadn’t painted the basement walls.

After moving in, Novell found the basement routinely flooded after rain or snow. Novell sued the sellers for misrepresenting the situation. The sellers appealed.

But the state's top court says it isn’t unreasonable for Novell to rely on sellers’ claims, and said the buyer can move forward with his lawsuit.

Source: The Associated Press (05/28/2008)