Court Opinion

ID: 9576357
Source: CourtListenerOpinion
Date Created: 2023-08-21 21:23:37.956312+00
Date Added: 2024-06-11T13:06:03.640153
License: Public Domain

SABERS, Justice
(dissenting).
I dissent because summary judgment was improper against the claims of negligent and fraudulent misrepresentation.
This case presents some “good news” and some “bad news” to realtors.
The “good news” is solely for the benefit of the individual realtors who absolutely escape liability without a trial despite serious allegations of negligent and fraudulent misrepresentations. One misrepresentation was that this Sioux Falls residence contained approximately 3.5 acres when in fact it contained only 2.2 acres. The second misrepresentation concerned specific boundaries pointed out to Buyer which were false. The majority opinion glosses over both misrepresentations and excuses them for various reasons, including merger and constructive notice of the plat recorded in the Lincoln County Register of Deed’s office. The problem with the “good news,” such as it is, is that it produces “bad news.”
The “bad news” is bad for all realtors generally. It relegates the real estate profession to third class status or below. It tells the public that realtors “can’t be trusted,” and that “buyer beware” is again the law when dealing with a realtor. Worse yet, it excuses realtors from performing basic duties to reasonably investigate properties before making representations concerning same. More specifically, it violates and holds for naught two key rules of the South Dakota Real Estate Commission. The first rule, ARSD 20:56:05:29, states:
On taking a listing, a licensee shall substantiate that the information taken in the listing agreement is accurate. As far as latent defects are concerned, it is not a violation of this section if the licensee discloses to the buyer that the listing information or parts of the listing information are solely the representations of the seller.
The second key rule, ARSD 20:56:05:31, provides:
A licensee may not make a substantial or willful misrepresentation to a buyer that is injurious to the buyer.
Genuine issues of material fact clearly exist concerning violations of these rules, SDCL 20-9-1, Restatement (Second) of Torts § 552 (1977), and negligent and fraudulent misrepresentations.
The “bad news” of the majority opinion destroys established South Dakota prece*452dent concerning reliance on statements relating to boundaries, Rasmussen v. Reedy, 14 S.D. 15, 84 N.W. 205 (1900), and quantity of property, Ernster v. Christianson, 24 S.D. 103, 123 N.W. 711 (1909). Finally, the “bad news” overwhelms and destroys the right of an injured party to his day in court in violation of the South Dakota Constitution. I would reverse and remand for a trial so that the “good news” of a fair trial could be shared by all and justice could be properly served.
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*454APPENDIX 2
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