Expert: liznarr - 5/10/2011

Question
I recently bought a house, and when I moved in a neighbor brought to my attention that the previous owner had plumbing problems with the sewage backing up into the basement.  I contacted my realtor regarding this matter immediately and after he contacted the sellers agent, they said the problem was "re-mediated" by unclogging the drain.  Coincedentally two additional weeks after that I found that water had come into my basement after a night of heavy rain and I was also doing laundry at that time.  

I had a plumber come out to determine the problem wich is much more than a clog, the 100+ year old tree in the front yard is crushing the tar paper piping in the front of the house and the entire line needs to be dug up and replaced to fully remediate the issue costing from $3k-$5k.  

I contacted the broker of the selling realtor and he feels that they are not responsible for this.  Is there anything in the state of Maryland to help me pursue this matter further?

Answer
Hi Ryan,

If Maryland requires that a Seller Property Condition disclosure form be filled out and signed by Sellers, check whatever information this Seller provided on any potential plumbing issues, especially sewage backing up into the basement, to see if there was any mention at all of the problem you have discovered.

If this form is required in Maryland and was not presented to you PRIOR to your purchase, the Seller has a major problem now, not that he possibly does not otherwise in view of your writing.

I am not familiar with Maryland laws and the consequences for fraud (intentional misrepresentation), but fraud is never taken lightly in any state.  If you are unable to resolve this on your own, you will need legal advice if you want to pursue this matter…and for the cost to correct being upwards of $5,000, most people might consider pursuing this.  

If you can prove that the Seller’s agent knew of this condition and did not disclose it, the Real Estate Commission in the State of Maryland would be interested in hearing this.  If you can prove this fact, you should file a formal complaint at the Real Estate Commission against both the Seller’s agent and his Broker-in-Charge (BIC).  A BIC is responsible for all actions and/or inactions of all agents working under him/her in all states which result in damage(s) to a member of the public, period.  

If I were in your shoes, before incurring legal costs, I would start doing some more homework and gather as much additional information as possible.

See if you can find out from your neighbor what plumbing company was used at your property when the previous owner lived there.  Also, if this neighbor will give you a written statement of what he knows, this could be invaluable to you later – as the neighbor may not be so willing to talk later.  

By the fact that the Seller’s agent has already passed on to your agent (at your request) that this problem was remediated by the previous owner by unclogging the drain, it appears that the Seller DEFINITELY had knowledge related to this condition.  The question I have now is, did the Seller’s agent also have the same knowledge prior to your purchase.  Again, was this disclosed to you previously?  If the BIC’s agent had any knowledge of this condition and did not disclose it, both the agent and his BIC have liability.  

Have your agent contact the Seller’s agent again and ask for the name of the plumbing company that performed this “remediation,” when it was done, and request a copy of that invoice.  

Also get a statement from YOUR plumber, detailing the problem, how long he thinks it has existed (at least stating that it must have existed at the time of your purchase), and the cost to correct.

Did you have a home inspection done prior to your purchase?  If so, was there any indication of a possible problem on your inspector’s written report--staining in the basement from sewage backups and/or water intrusion in the basement, slow drains, or anything related?  If you did not have an inspection, make sure on any future purchases you always pay a reputable, qualified inspector.

After you gather as much information and documentation as possible, you might consider sending a certified letter to the Seller and his agent and that agent’s BIC.  Depending on what “good” information you were able to obtain, give them all a period of time (whatever the demand period in Maryland is) to pay up, or let them know you will proceed with legal action.

I hope the above is helpful and points you in a direction you’ve not yet looked into.  Good luck to you, and feel free to write again if you have additional questions.

Regards,
Elizabeth