HUGH C. LYNCH, APPELLANT,
v.
W.H. FANNING, JR., APPELLEE
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Lynch purchased property from Fanning with representation that it had 125 feet of water frontage. A survey obtained 13 months after closing revealed only 96 feet of water frontage. The trial court granted summary judgment for Fanning, but the appellate court reversed, holding that Lynch's failure to exercise his contractual right to conduct his own survey does not eliminate his cause of action for innocent misrepresentation.
The court held that Lynch's contractual right to secure a survey should not eliminate his cause of action for innocent misrepresentation. A buyer may pursue a claim based on innocent misrepresentation of a material fact in a real estate contract despite having the opportunity to discover the falsity through a survey.
[1] A buyer's contractual right to conduct a survey does not necessarily eliminate a cause of action for innocent misrepresentation of a material fact in a real estate transa…
[2] An innocent misrepresentation of a material fact in a real estate contract, upon which the other party detrimentally relies, can form the basis for a cause of action, eve…
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Join FLexlaw to unlock all legal intelligence“an innocent misrepresentation of a material fact acted upon by the other party to a real estate contract, to such party's detriment, is basis for a cause of action”
Establishes the legal standard for innocent misrepresentation claims in real estate contracts
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Join FLexlaw to unlock all legal intelligenceLynch purchased a tract of property in Okaloosa County from Fanning based on a seller's survey indicating 125 feet of water frontage. Lynch also revie…
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SHIVERS, Judge.
Lynch appeals the summary judgment granted in favor of Fanning. He contends that the trial court erred in ruling as a matter of law that he had a duty to ensure that he was purchasing the property described in a survey furnished to him by the seller of said property, that is, Fanning. We reverse.
Lynch purchased a tract of property in Okaloosa County from Fanning. Prior to such purchase, Fanning obtained a survey of the property from a registered surveyor. The survey indicated in its legal description that the subject property had 125 feet of water frontage. The lot drawing contained on the survey did not reflect or measure the water frontage. A copy of this survey was furnished to Lynch. Lynch also obtained a print-out of the Multiple Listing Service describing the property as “Lot 20, Cobb’s Point” having 125 feet of water frontage. Additionally, Lynch reviewed an undated and unrecorded plat of the property which plat reflected this property as having 125 feet of water frontage. This plat was furnished to Lynch by his real estate agent. Also, Lynch inspected the road frontage of the subject property prior to his purchase, but due to the density of the timber on the property, did not inspect the water frontage.
Lynch submitted a written offer to purchase the subject property which, after amendment, was accepted by Fanning. The contract contained no reference to water frontage, but did give Lynch the right to secure a survey prior to closing. Lynch did not exercise his right to conduct a survey and closed on the transaction about two months after submitting his offer to purchase.
Approximately thirteen months subsequent to closing, Lynch obtained a survey of the property in connection with the construction of a sea wall. This survey indicated that the water frontage of the property was 96 feet, rather than 125 feet. Lynch then instituted an action against Fanning for breach of contract seeking therein damages. Fanning moved for summary judgment. This motion was granted; the court found that as a matter of law Lynch had the duty to ensure that he was purchasing the property described in the legal description furnished to Lynch by the seller, Fanning, and that Lynch chose of his own volition not to take advantage of his contractual right to conduct his own survey. The trial court also found that there was no evidence of fraudulent misrepresentation or concealment by Fanning and that both Fanning and Lynch believed that the subject property consisted of 125 feet of water frontage.
In Held v. Trafford Realty Co., 414 So. 2d 631 (Fla. 5th DCA 1982), the Fifth District Court of Appeal stated that an innocent misrepresentation of a material fact acted upon by the other party to a real estate contract, to such party’s detriment, is basis for a cause of action. Appellee’s argument in Held that the buyer could have discovered the representation to be false, i.e., that the subject property was not ocean front property, by conducting a survey, as the buyer had a contractual right to do, was held not to eliminate the buyer’s cause of action. Similarly, we conclude and hold that Lynch’s contractual right to secure a survey should not eliminate his cause of action.
Accordingly, the summary judgment is REVERSED and the cause is REMANDED to the trial court to conduct proceedings consistent with this opinion.
REVERSED and REMANDED.
MILLS and ZEHMER, JJ., concur.
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Gilchrist Timber Co. v. ITT Rayonier, Inc., 696 So. 2d 334 (Fla. 1997)…ctions — Civ. Cases, 613 So. 2d 1316, 1319 (Fla.1993). The court noted, however, that at least one Florida district court had applied Besett’s logic regarding fraudulent misrepresentations to a case involving negligence claims. See Lynch v. Fanning, 440 So. 2d 79 (Fla. 1st DCA 1983). Gilchrist argues that the rule should be the same for both a fraudulent misrepresentation and a negligent misrepresentation, asserting that the focus should be on the effect of the misrepresentation on the recipient rather than…
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W.F. Yost v. Rieve Enters., Inc., 461 So. 2d 178 (Fla. 1st DCA 1984)…d by it in entering into the contract, so that whether the misrepresentation was innocently or knowingly made, the legal effect is the same. Langley v. Irons Land & Development Co., 94 Fla. 1010, 114 So. 769 (1927). Held at 632-33; Lynch v. Fanning, 440 So. 2d 79, 80 (Fla. 1st DCA 1983). Additionally, the party guilty of the fraudulent misrepresentation may not be shielded by the doctrine of caveat emptor. Thus, the purchaser of business property is entitled to rely on the truth of the seller’s representatio…
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Robert "Bob" Cheetham and Jack Brickman v. Dade Fed. Sav. & Loan Ass'n, 449 So. 2d 996 (Fla. 3d DCA 1984)…PER CURIAM. Affirmed. Besett v. Basnett, 389 So. 2d 995 (Fla.1980); Lynch v. Fanning, 440 So. 2d 79 (Fla. 1st DCA 1983); Held v. Trafford Realty Co., 414 So. 2d 631 (Fla. 5th DCA 1982).…
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Join FLexlaw to unlock all legal intelligenceAuthorities Cited
- Held v. Trafford Realty Co. & Kathleen W. Welsh, 414 So. 2d 631 (Fla. 5th DCA 1982)