Expert: Hans Weber, Licensed Broker Associate - 8/12/2009

Question
My husband and I bought a home in June of 2008 the house is 30yrs old. The realestate had the water tested and it came back good. So we knew the well and septic were in good condition, or so we thought. After moving in we realized we had been lyed to. The water was really dirty so we had our own test done came back with high counts of coliform. Also winter came and we started getting cracks in all of our walls. Then we realized we had a foundation problem. Last week we rented a backhoe to dig around the house to check the foundation and realized there is no foundation we are just a young couple starting out , we don't have much money and we are not sure if we would be able to sue the realestate or who we go after. Really need some advice on what to do.

Answer
Hello Margaret,

Thank you for your question.

In New York where I am it is law for the well water to be tested by a licensed company and the house cannot be sold unless the results are acceptable.  Who did the test for you?  Do you have the report for the water test showing the company that did it?

You are in Canada?  Is it common for houses in your area to have foundations?  Some areas do not have foundations, they are not practical, due to the terrain, climate, eartquakes, water levels, etc. and houses are built on slabs.  What is the construction of neighboring houses?

My first stop would be to the municipal building department.  Look up the building permits and certificates of occupancy and ask the building department if everything looks in order.  Tell them about your findings and if there might be something wrong.  Ask if they know of anything about well water in the area in general.  Sometimes a neighborhood can have well problems.

Next ask the real estate agent for any seller disclosure forms that may be available and review them.

Speak with some of the neighbors.  Do they have similar problems?

Also prior to buying the house you should have had a home inspection by a licensed home inspector.  They would have inspected the house with you and reviewed all the functioning parts, mechanicals and structure.  Check the report and ask the inspector to come back and look at the walls to try to determine what is causing the cracks.  If you did not have a professional inspection it is not too late now.  Find a structural engineer (ask at the building department or maybe they would come out to look) and have them look at your walls.

Determine where or how you missed finding these problems before you bought the house.

Once you have reviewed your situation and gathered all reports ask to meet with the real estate agent and explain the problem.  They may want to get their manager involved.  Ask if they have any suggestions to help you.

Now that you have explored all these options see if you can determine if and where any deception took place.  In reality it is possible a well can go bad, that would just be bad timing.  

If, in fact, you were decieved you may need a lawyer.

Hope this guides you in the right direction.

Hans