AboutTimmy Chou Expertise I am a experienced Mediator and a partner in a management consulting firm. As a mediator I work as a third-party neutral and specialize in partnership/shareholder disputes, management/labor issues, company culture difficulties, and family-owned business problems. I can help describe why alternative dispute resolution may be a good choice for you. As an experienced management consultant I may be able to offer creative ideas to help resolve your organizational and business problems and disputes. "If you say conflict, I say opportunity".
Question I purchased a home in Michigan in Oct'08. The basement has leaked every month since from various cracks in the wall. The sellers freshly painted the unfinished basement prior to selling the home. I also discovered that they painted over efflorescence on the basement wall and that there is evidence that the wall cracks were filled with some sort of substance. The outside patio is severely sloped towards the basement wall, thus directing groundwater into the cracks. The sellers also denied the basement ever leaking on the real estate disclosure statement. However at closing, they provided me with paperwork stating that a previous unrelated crack in the basement wall and various rod holes were fixed 2 years prior to them owning the home. Am I right in reading the disclosure statement, that the sellers must disclose any knowledge of the basement leaking? I have taken pictures and received estimates for repairs, but the sellers have refused to pay anything as they have denied any water leaking into the basement during their tenancy. I am planning on pursuing arbitration. In addition to my earlier stated question, am I going about this the right way and what additional things could I do to further enhance the likelihood of me receiving a favorable judgment?
Answer Thanks for your question.
Well as I may have said, the burden is on you to prove that there is a problem. The seller can disclose what he wants. He can even sell the home "as is" with no warranty if he wants. What the seller cannot do is lie and here is where you must focus your efforts.
The seller is entitled to fill cracks and to paint walls all he wants but that does not necessarily constitute a "fraud" on you. If there is documentary evidence of recent leaking (you will need an expert witness here) you must be prepared to show this. Also you must show somehow that the seller KNEW of the leaking since it is not required that the seller be a contractor when he discloses stuff, so the leaking must be shown to be recent, severe and not likely to be missed.
Again the burden is on buyers to do their due diligence during the purchase and not to rely on amateur sellers disclosing things they may not know a thing about. Work on proving a deliberate fraud adn you will prevail here.
