Expert: Karyn Foley - 7/29/2006

Question
Hello,
I am a first time home buyer in Indiana. St Joseph County, South Bend.
I recently, Nov 2005, purchased my home and found out devistating news when I had Everdry, a waterproofing company come to my home for a free inspection. They were called because I seen water in my crawlspace after a good rain and ever since that rain. There is also mold in my home! I told my realator when searching for a home to make sure there is no mold! Everdry quoted that the foundation needs to be waterproofed and its a 16,000 to 20,000 job. They also told me that I have a legal case because it is against federal law to sell a home without disclosing the damage. I did not pay a damaged price for the home. Also, the roof that was put on in Sept. is bowing in. I will call the roofing company to see if they will do good on their warranty before pursuing this.
What are my rights? I need help. Everdry stated that they do cases quite often when people get suckered into homes and win but need the financing and the work done before proceding with a lawyer. I am so confused and need help!
Thank You Thank You so much for being here! Tina

Answer
Dear Tina:
 Sorry you are going through such a dreadful situation.  Perhaps I can be of some help, but only a real estate attorney can advise you of your rights and steer you in a positive legal direction.
 Most states have disclosure laws where the seller, seller's agent and buyer's agent have the obligation to disclose to their buyers or prospective buyers any problem or defect with the property that is known to them. Since you had an agent who represented you, you can ask him or her, and why you did or did not receive the disclosure form.  You were also entitled to do a complete home inspection.  Why were you not so advised?  If you were not adequately represented, then you need to seek an advocate within the legal profession.  Since you were represented, your agent should step forward and do right by you by going over what I mentioned.
 Take pictures immediately of all that is awful, and start keeping a diary of what, when, how, starting from when you found each of the problems.  Your lawyer will find that valuable.  If you did get an inspection, call the inspector and ask him to go over why he missed these items.  Some of the good inspectors have errors and ommisions insurance that could cover the costs.
 I would not spend another penny until you get some of your questions answered.  Too many people buy without receiving the proper support and representation and while they are saving money,  it ends up costing them more than a simple and well-earned real estate commission from a top notch agent from a repuatable company. We all want a bargain, but in major investments a good value trumps a bad bargain.
 Many attorneys willl work on a contingency basis, and recover their own fees based upon what you get for your damages.  It is worth a few dollars for an initial appointment if you can't get help from your real estate agent.  If your agent won't answer your questions, call their office manager or company owner.  That will get them to pay attention. Especially if they know your next telephone call will be to an attorney who will probably draw in the agents if there is a subsequent legal action.
 Again,it is difficult to be an advisor without knowing the laws where your home is located,and without seeing a copy of your contract.  Your attorney will also need all of the documents relating to your purchase.
 Sometimes it is discouraging for a new home buyer to learn that there is sometimes a first time water problem.  This problem may have been a pre-existing problem or happened for the first time after you became the owner.  Were you not aware that there are home protection policies available for purchasers?  I am beginning to question the actions -orlack of actions- on the part of your agent.You may be prudent to call in a second person to give you a waterproofing inspection, just to confirm what the first company told you.  I never rely on just one opinion, unless I have had good experience dealing with them over many years.  
 Regarding mold, your agent is not an expert on what is or is not mold!  You needed a professional mold inspector to have made that determination. I can't imagine anyone buyer a home without inspections.  Your home inspector, if you had one, would have mentioned your hiring a licensed professional with regard to a mold determination if you were concerned.
 To sum this up, the first step is taking pictures then calling your agent and agent's manager/officed owner.  They owe you support and direction.  Ultimately they may be the ones to help you out, but if they don't, call a lawyer quickly before the end of the year rainy season!
 You deserve some aid and I want you to receive it.  Please let me know what happens, and if I can be of further assistance.
KARYN FOLEY