Expert: Jessica Bryan - 7/19/2008

Question
i just purchased my first home and upon receipt i was very unhappy with the condition of the resident. Numerous amounts of holes in the walls, broken windows and an unbelievable amount of garbage such as old clothes, furniture and broken glass was left behind in the basement, this although disheartening is not my major concern. While downstairs assessing the garbage situation i grabbed a flash light and just so happened pointed in towards the ceiling. I noticed that the floor joices where very dark in color and as i proceeded close to the center of the house it was very apparent that a structural fire had occurred at one time. My main question now is since i had an inspection done and no word of this was in the report and the sellers also didn't provide me with this information either, who is liable to fix this problem and can i pursue legal action in order to get this major problem fixed and how do i go about doing so.

Thanks so much,
mike

Answer
Dear Mike;
Not knowing what the Seller's disclosure form looks like in your area, I am not sure if there was a question that was asked on the form about fires.  If the Seller didn't disclose something that they knew about then there is a potential lawsuit.  However, if the structure was not damaged and there is nothing wrong with the house as it stands it might be difficult to get any compensation. The only suggestion I have is to talk to your real estate agent and ask what the laws in your state are pertaining to disclosure of fires.  (I know that in some areas it is required to disclose a fire regardless of the damage caused.)  As for the inspector, you should read the agreement you signed (assuming you signed one) to see if he is liable for verifying conditions such as evidence of a fire--which was certainly noticeable if someone bothered to check.  You might need to consult with an attorney to find out what can be done and how much it will cost to pursue legal recourse.  

I am concerned that you may not have used a real estate firm to represent you.  If you had, then you need to contact them at once and get them involved.  They might be able to assist you.  At closing, a home is to be delivered in the same or better condition than when you signed the agreement to purchase.  It should also be delivered in a clean and undamaged condition unless agreed upon in writing that the home will be delivered as is.  I would strongly recommend that you have an attorney look over your contract and see if there is a way you can recover some cost.  Unfortunately, once you agree to close and sign on the dotted line, you also agree to accept everything that you see in the house before closing.  That is why it is so important to do a thorough walk-through  on a house before you go to the closing.  

I am very sorry that you have run into this problem and wish you all the best in resolution.

~Jessica Bryan