Rescission of Home Sale Upheld, in Part, Due to Misrepresentation in Disclosure Statement

LITTLE ROCK, Ark. - The Arkansas appeals court upheld the rescission of the sale of a flood-prone home due, in part, to the misrepresentation made by the seller that the home had not experienced flooding. Paul Riley, Individually and as Trustee of the Riley Family Revocable Trust, Appellant v. Guy Hoisington and Kay Hoisington, Appellees, No. CA02-374 (Ark. Ct. App.).

The appeals court affirmed Jan. 29 that the damages suffered by the home purchasers in repairing the damage from several floodings and the resulting mold damage were the result of the seller's fraud, as well as of the home inspector's …