JSOnline: Buyers lose recourse in frauds - Court rules they can’t sue sellers for punitive damages
Caveat emptor is Latin for “Let the Buyer Beware.”
According to Wikipedia, “
under the doctrine of caveat emptor, the buyer could not recover from the seller for defects on the property that rendered the property unfit for ordinary purposes.”
Over time, real estate contracts have been drafted to provide additional protections for real estate purchasers from unscrupulous sellers. Until recently, real estate purchasers were able to sue for fraud to recover damages.
During a recent court hearing, the Wisconsin Supreme Court ruled that “home buyers who believe a seller has lied to them cannot sue for fraud to recover damages.”
Three members of the Supreme Court and the Wisconsin Realtors Association (WRA) are disappointed in the ruling.
Wisconsin places a great deal of weight protecting consumer rights.
That’s why it shocks the conscious to think that the Court would have ruled in favor of the seller in this case.
Wisconsin is the only state in the country barring civil fraud cases in real estate transactions.
The four Justices ruling in favor of this decision stated that home buyers should be “assured” that lawsuits alleging breach of contract and false advertising can still be filed.
My Thoughts
The highest court in the State screwed up in this case.
As a Real Estate Broker, REALTOR®, and now real estate purchaser, I would feel better knowing that I can rely on what the current owner of the property tells me regarding his or her home.
Without remedies in place, there is no longer oversight protection for buyers who are purchasing one of their biggest investments that they will ever make.
Scott Bauer, writer for the Associated Press, writes more about the Court's decision and what it means for today's real estate purchasers.
Click here to read more about this case and its implications>>>-----
Labels: Real Estate
0 Comments:
Post a Comment
<< Home