lawsuit not filed but caused loss of sale

We live on a small lake and have the "only" right to the use & enjoyment of all recreational rights in and upon the lake. the homes accross from us have rights only to paddle, boat and canoe. We have been here 2o years and the new homes over thae last five. One neighbor is not happy about our jett skii's and has called the police and city several times, but it does her no good. We are in the process of seeling and had averbal deal as long as the lake rights checked out ok. The buyer went to the city to make sure of our rights (they own the land beneath and water0 and this city told them that they were at no reisk and they were goog, but that a lawsuit maybe brought upon us from someone, but would not say who, The complaint they are using is that jett skii's did not exist in 1972 and we can only use boats. We have lost our buyer because of this "might be" statement. Does the city have a right to say something like this that is only hearsay? Over a year ago she did threaten us and the city she might go after us, but nothing happened.
Can we sell to poeople and not mention this possibilty? Plus what happens if we sell and a year or two from now she does decide to try to sue?
Thanks

You could tell them not to say things that are unfounded rumor or you may take legal action but to be honest it would be hard to sue for that. You certainly don't have to speculate about what suit could be filed when selling. And perhaps a title company can give you a better opinion about what rights really exist for you.