Expert: Karyn Foley - 10/6/2010

Question
I have purchased a home in the state of Delaware.  After living there for 6
months I noticed the basement floods when it rains hard.  I specifically
asked the realtor and the home inspector if the basement leaks.  They
both told me it was not a problem.  After contacting the realtor about the
discovery and letting him know that had this been disclosed I would not
have purchased the home as I have small children with asthma and
flooding basements which lead to mold are not a good environment to be
in.  I have been pretty much blown off by the realtor and I would like to
know if they have a legal obligation since the information was withheld
when I asked?  I'm stuck for at least 2 years in this place or I'll have to
pay back the stimulus money I received for purchasing a new home.  
What can you suggest to help me with this?

Answer
Dear April:
 Please check your contract and all of your documents.  Did the home inspector check over the basement?  If he did and noticed no problems, it may be that was caused the problem is not able to be visible.  The inspector may or may not have errors and omission insurance.  If not, try small claims court in your area after you contact a specialist who can tell you what causes the leak and if it should have been noticed by the inspector.  Get those findings in writing. And, get a bill for repair.
 Did the seller sign a transfer disclosure statement?  They are mandated in many states.  If so, you may have legal recourse.  Your contract may also have mediation and arbitration clauses that were signed by both principals.
 Do you have something in writing from your agent?  Or, a self serving letter stating when you asked her about the basement?  Your realtor probably does not have the experience with basements to have had any knowledge.
 Were you given a home protection plan by the seller upon close of escrow?  Good agents usually make certain that their buyers request same during the course of negotiations and writing of the offer.
 You need t prove that the seller knew about the leak to consider a fraud claim.  However, a major leak may have been present before, and your specialist should be able to claim that.  There are always first time leaks, though, and it may take a real estate attorney to lean on the seller to get him to pay.
 I am sorry you are going through such problems.  Good luck, and please let me know if you have any more questions.
KARYN FOLEY  
 You should contact the manager and/or owner of  your agent's office to seek some support.