Ronald C. Smiley and Terri H. Smiley appeal from the grant of summary judgment in their suit for fraud, breach of contract, professional negligence, and negligent misrepresentation against S & J Investments, Inc., Jack E. Hall, Jr., and Hussey, Gay, Bell & DeYoung, Inc., Consulting Engineers “HGB&D” in the purchase of their home. On July 27, 1998, the plaintiffs entered into a real estate purchase and sales contract with S & J, and on the next day Hall, as the principal agent, delivered to them a Seller’s Property Disclosure Statement for 13 Wylly Island, which the plaintiffs contend was fraudulent. Plaintiffs contend that the statement contained in standard form the following questions and responses which were intentionally false: “Are you aware of any past or present sliding, settling, earth movement, upheaval, or earth stability/expansive soil problems No”; “Are you aware of any past or present drainage or flooding problems No”; “Structural items. Are you aware of any past or present movement, shifting, cracking, deterioration, or other structural problems with floors, walls, or foundation No”; “Are you aware of any past or present problems with driveways, walkways, patios, or retaining walls on the property No”; “Water leakage or drainage No.”
Prior to the purchase contract being executed, the plaintiffs, in the exercise of reasonable diligence, had Mark Shaw, a former building contractor, inspect the premises; Shaw expressed concern over the condition of the house.1 Because of plaintiffs’ concern over Shaw’s findings and to induce the sale, S & J had HGB&D make an engineering inspection and prepare a report to give to the plaintiffs and to allay the plaintiffs’ concern prior to closing. Plaintiffs relied on the professional reputation of HGB&D and on the fact that HGB&D had made a visual inspection and had “found no signs of structural failures.” Initially, the plaintiffs offered $600,000 for the house because they were concerned that it had structural defects, requiring repair; however, the plaintiffs, in reliance upon the representations of Hall and S &J and the inspection by HGB&D purchased the house for $670,000, and later found that the house had numerous defects of which they had been unaware at closing.
