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Hoffman v. Fletcher

Sellers disclosure of prior drainage problems and repairs put buyer on notice of such conditions.

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On November 14, 1997, Jennifer Hoffman signed an agreement to purchase a home from Wendy and Andrew Fletcher. ReMax Associates of Athens acted as dual agent in the transaction, with agent Susan Mosley representing the Fletchers and another ReMax agent representing Hoffman. Hoffman filed suit against the Fletchers, Mosley and ReMax after the septic tank on her newly-acquired home overflowed.

In conjunction with the transaction, the Fletchers signed a “Seller’s Property Disclosure Statement.” The Fletchers checked a “yes” box on the statement indicating that they were “aware of past or present drainage or flooding problems” with the property. Their handwritten explanation of this response stated, “Oconee County Road Department is in the process of re-doing the drainage pipe in the neighborhood which happen sic to lie in our front yard. This is expected to be completed in October, so I am told.” On another portion of the form, however, the Fletchers indicated that they had no knowledge of “any past or present leaks, backups, or other similar problems relating to any of the plumbing, water and/or sewage related items.” The disclosure statement was incorporated into the parties’ purchase agreement. And as a part of that agreement, the Fletchers warranted that to the best of their knowledge and belief the information in the disclosure statement was “accurate and complete” as of the date of the contract.

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