Expert: Todd C. Menard - 7/15/2010

Question
I recently purchased a home had my inspector as well as an FHA inspector look over the home both said it was good with some issue to the roof and gutters. We've been here two weeks now had a good rain and notice water around a few spots in basement. every time we use our water to shower wash dishes we see water bubbling from a drain in the basement. we had two roof experts inspect the roof and say we need it replaced ASAP. Is there anything we can do. We really don't have 10 to 15 thousand dollars to put into the home just to make it suitable for living.

Answer
Hello Phillip - I apologize for the delay in my reply. The state licensing entities that govern Home Inspection are different in every state. In AZ, for instance, it would be both the Board of Technical Trade as well as the Registrar of Contractors. There is also the National Association of Home Inspectors (NAHI) that establish the inspectors code of ethics and minimum standards of practice. Home Inspectors must be licensed in some states, like Arizona, and as licensed individuals take on liability for a lack of expertise. If you contact the governing entities in your state, or www.nahi.org you can inquire as to what responsibility/liability the home inspector may have in your state. The FHA inspector would have no responsibility or liability to you since they are accountable only to the individual or entity that hired/employed their services. There is also a requirement that a SELLER DISCLOSE ALL MATERIAL FACTS about a home... it seems to me that your description of the leak might indicate the seller 'knew'... or 'should have known' about this issue. The definition of 'material defect' is whether the issue would affect the consideration paid for the property (price), or if the buyer was made aware of the defect would the buyer still be willing to place an offer to purchase the property after learning about the issue. Therefore, if you knew about the issue would you still have purchased the property or paid the same amount you paid for the property? If you believe the seller knew or should have known about the leak due to it's nature then the seller may have some liability. You would need to contact a real estate attorney and discuss your situation and learn what rights you have. The duty to disclose is required of all sellers whether an owner-occupant or a bank owned/lender foreclosure. An 'AS IS' addendum does not waive the buyers rights to the seller's required disclosure. In addition, you may also want to contact your real estate agent and the brokerage's 'Designated Broker'. This designated individual is responsible for the supervision of his/her agents. If there were visible indicators in the property that a roof leak existed it would be your agents responsibility to have identified this and noticed you that there may be a condition with the integrity of the roof. The real estate agent has no other obligation that to notify you and assist in directing you to a licensed roofer to ascertain the extent of the damage. Furthermore, the National Association of REALTORS Code of Ethics indicates that REALTORS have a duty to disclose known issues about a property to their client as well. This also includes items a REALTOR 'should have known' through identification of 'red flags' such as a ceiling stain. Also, if the seller was inquired as to a roof repair, there is a requirement that your real estate determine the 'veracity' of the information or at least indicate to you that the information is either being passed along from the seller without verification or investigation. If either of these situations occurred, the brokerage firm may also share in the liability for lack of proper representation. This of course being the buyer agent only... a listing agent would only be required to inform you of a defect, not assist you in the investigation. Finally, if repair work was done on a property prior to closing and the repair was not properly completed, or the like, the contractor may still be responsible to further repair the leak. Check with the State Board of Contractors for the time period with regard to roof repair (some states are 180 days from the repair date). Latent or hidden defects are always issues when discovered after the closing of a home. Once again, I recommend seeking a real estate attorney to discover what options you have while you are investigating these other avenues. Many times the attorneys initial consultation is at no charge or extremely affordable as they want to listen to you to see if you even have a situation that they can remedy, and if they desire to take you on as a client. Please remember I am not an attorney and this information is not to be considered legal advice, rather it is real estate information any experienced REALTOR should be able to provide. Should you need further information please reply to this post. Once again, please forgive my delayed reply. - Todd Menard