AboutDick Dennis Expertise With more than 37 years as a real estate broker, I can solve most any problem presented. If I can`t, I do my research. Problems with mortgages, trust deeds, foreclosures, odd ways of conveying titles. Most any good Realtor can answer questions satisfactorily, but I answer questions that most cannot. Also, ask about my hard-copy newsletter.
Experience Problem solving since 1980
Organizations National Association of Realtors
Publications Publishes The Landed Gentry, guest writer in Who's Who in Creative Real Estate, First Tuesday, Financial Freedom and many newspapers
Question QUESTION: Hi, my sister is 73 years old and lives in Ohio. She had to sell her house last summer, her husband is in a rest home and she could no longer afford it. She had a termite inspection and nothing was found, the house was sold and it was a done deal. Now the current owners have initiated a lawsuit saying there is termite damage that's so severe the house should be raised. They have sued the realtor, the termite company and my sister. My sister was sued because they're saying she knew about the damage and lied about it when she sold the home to them. They're saying this because her son had replaced a sliding glass door in the spring and replaced it with a French door. Neither he or my sister saw anything they thought was termite damage. Her son thought they had had some water damage, but that was it. Can she be held responsible for damages? She lives in an apartment and otherwise has no assets that she owns, only a small IRA account that's likely below $10,000 at this point.
ANSWER: Apparently in Ohio they do not have a mediation clause in the sales contract. Here in California, we MUST see how far mediation would go BEFORE we contemplate suit in court.
The fact that the buyers DID NOT bring this up at the time of the work being done so that your sister could have an expert to inspect the condition of the house AT THAT TIME makes this suspicious. But I am sorry to say your sister nevertheless will have to use some of or all of her socked-away money to defend herself in court. But first she will have to go talk with a REAL ESTATE attorney. He/she may have a trick or two up his/her sleeve to make this go away, because this is more of a legal case than it is a real estate problem.
I have a sneaking suspicion that the buyer is looking for a way to reneg on the deal AFTER the deal is completed. The fact that they never gave your sister the opportunity to inspect "the damage." It's an older house anyway. What did they expect, a new one?? I wish you well.
Dick Dennis
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QUESTION: She did receive a letter earlier this year and the new home owner's attorney had sent it asking that my sister, the realtor and the termite inspector get together and decide how to rescue this couple from the dire situation they were in. My sister consulted an attorney (he handled her power of attorney and some other things) and he told her not to do anything. She was just served with the lawsuit in the last week or so. Might this have been the attempt to mediate? The attorney she used originally said he can't take the case as it would cost her $5000 and he'd be too expensive so he's trying to find someone to help her.
Thanks much for the information. I know she's worried and probably losing sleep over it, not to mention her husband's condition (alzheimers for 3 years now) and dealing with that.
Answer I am sorry your sister is having problems now that her attorney said don't do anything. She could have participated in an informational session or even mediation. But since the attorney told her not to respond she will probably pay with her anguish and maybe money, too.
