Expert: liznarr - 1/11/2008

Question
Hi,

I was hoping you might be able to point me in the right direction.  We bought a house about three months ago for over $200,000 and the heating/cooling unit has not functioned properly since we have moved into the home.  Before buying the house, we asked both the sellers and the broker if the unit was working properly and we were told yes.  We have since contacted both parties but were basically blown off.      
This is something that should have come out in the disclosure process, correct?  We purchased a warranty with  the house but, they refused to fix the problem because they  say was a preexisting problem.   

We are now considering legal action.  Do we have grounds for this?  (This happened in Tennessee).

Any information you could provide would be great.

Thanks, Vikki

Answer
Hi Vikki,

You are correct that if the heating/cooling unit in your home was not in proper working condition when you closed, there should have been disclosure by the homeowner regarding this…IF the Seller was aware of such condition.  Does Tennessee have a mandatory disclosure law?  If so, did you receive a WRITTEN disclosure from the Seller?

Did you have a home inspection done?  If so or if not, did you have a Heating and Air Conditioning Letter done prior to closing?

If you did have an inspection that did not indicate any problem with the heating/cooling, and a heating/cooling letter at closing that was clear, you will have to prove otherwise now to assert a problem or condition that pre-dated your closing.  

If you can somehow obtain records of service on the unit prior to your purchase, this might shed some light on the issue.  Ask neighbors if they ever saw heating/cooling companies out working on the unit before you purchased.  There’s usually a busy-body in every neighborhood that observes much of what goes on, and I’ll bet if you ask around you can find one.

It’s interesting that the warranty company is claiming that the problem is pre-existing.  I would investigate their refusal and find out WHY they believe it is a pre-existing problem.  This could be your answer.  Ask if they inspected the unit prior to closing.

If they have some proof or evidence of something that you are not aware of, you should ask for their refusal in writing (accompanied by any service order for any visit they made to your property) and call an attorney very quickly for legal advice on how to proceed from here.

Good luck to you, and write again if you have additional questions.

Regards,
Elizabeth