Expert: Hans Weber, Licensed Broker Associate - 2/17/2010

Question
QUESTION: We purchased our first home august 09. Jan '10 major roof leak. Seller states roof is 3 years old. under roof leaks seller didn't answer at all. We have had 9 roofing companies here to give us estimates. We decided to do the demo to the bedroom, both bathrooms and basement stairwell ourselves. Upon tearing down ceiling we find a second molding leaking ceiling with 8 1x6's that were holding up the new ceiling.This second ceiling goes the entire length and width of our home. upon pulling down the found ceiling we find moldy wet insulation and water poured down our clothing. You can see daylight through the roof. We decided to pull the drywall walls down to check for damage. Behind the walls are the original water stained, molding, wet drywall walls that match the found ceiling. 2 daughters with asthma have been overly ill this winter and we were unsure why. Daughters now have to stay elsewhere because of health hazards. Also had electrician in after leak started because furnace went our. Home is not  up to code on electric, have had to rewire entire home this was before we tore down the ceiling. upon looking at sales contract there is an "as is" clause and a "seller is not responsible for any repairs" that was not in the original copy that our lawyers looked at before hand. We live in Michigan, have only made 4 house payments and now have an uninhabitable home unsafe for our children.....help please. . Our knowledge was that the previous owners husband (deceased) did all the interior work himself because he purchased the home condemned, only found that out recently from the neighbors who helped him with repairs, Also electrician found 7 junction boxes with exposed live wires buried in the drywall. Also all of our water access for the bathrooms were drywalled over, and the old basement access was never framed off just drywalled over, thank god my daughter never leaned too hard on the wall or she would have fallen straight through. Every contractor who has come in here has said they had no right to sell anyone this house. No idea where to start. HELP point me in the right direction please.

ANSWER: Hello Heather,
Thank you for your questions.

It sounds like a disaster. I have some questions for you.

Did you buy the house with a real estate agent or direct from the owner?

After you agreed on the price did you have an engineering inspection by a licensed inspector?

Did you, your agent, lawyer, title company check the building records at the municipal building department?

Have you checked with your homeowners' insurance policy to see if any of this is covered?

It is pretty hard to imagine all these problems and none of them being known or discoverable by someone before you closed.

Let me know.

Hans









---------- FOLLOW-UP ----------

QUESTION: We did go through a very well known real estate company. The home was inspected per FHA guidelines at our expense. I relied on our realtor to get the property records history report (in hindsight I should have done that myself), we have title insurance and did a title search, we also had my mother=in=laws attorney look at the contract before we signed (which we have recently learned is not the same contract that WE signed). The home we purchased was listed under another well known reality company. The home supposedly belong to a couple who "redecorated" the whole house and when the husband passed away suddenly the wife had no option but to sell her home. No permits were ever pulled per city hall so we didn't question the "redecorating" aspect of it and everything had a fresh coat of white paint. Upon further checking each room has signs of water damage including the cathedral ceiling in the living room that has cracked this weekend. Contractor's cheapest bids equal $35,000. Home owners will only cover a portion $6,000 as most was preexisting damage. We cant get a loan in this economy for $29,000 when we just bought the home in '09 and we had windows installed $6,400, that we almost have paid off but until then that company put a lien on the house......I am scared and now my daughters are all complaining of headaches and eczema coming back and bloody noses that I am afraid is from the mold.

Answer
Hello Heather,

Thank you for the details.

This sounds like the seller is responsible for covering up the damage and mold rather than curing or repairing it.

The home inspector would not look inside the walls, but some do have equipment to measure moisture within walls and test for mold.  That is a matter of who you chose to do the inspection.

The Realtors would not look below the surface either, opening sheetrock walls etc.

Since your homeowners insurance says it is mostly preexisting damage that would be the first witness to point a finger at the previous owner.

So, at this point you probably need to get your lawyer involved and have them contact the seller's lawyer about this discoveries and request they pay for the reconstruction and repair.

I am sorry about your plight.

Hans