Expert: liznarr - 8/8/2007

Question
Hi Liz. My hubby and I purchased our house 11 months ago. We had the inspection and there was evidence of water damage. We asked the seller (through his realtor) if there had been flooding issues and he said no, just minor seepage if the rain spout was not on properly, and signed a disclosure saying there was no water issues to his knowledge. We specifically asked if he felt there would be an issue finishing off the lower level, the seller already had drywall up we just needed to put in flooring and he told us no problem. We experienced heavy rainfall, and as a result our lower level flooded causing major damage. As we were ripping up sopping wet carpet my husband removed a piece of trim and found mold, he then took out part of the wall and found it was moldy behind the whole wall, the studs were rotten and there was a crack in the corner of the foundation and dirt was spilling in. Our neighbors told us the seller had had water issues in the past. Can we sue the seller for false disclosure? Even the contractor that gave us the estimate for repair said there is no way the seller could've drywalled and not noticed any issues.

Answer
Hi Molly,

Wow, sorry to hear of your dilemma.  Sounds like you need to contact a good trial lawyer ASAP.

I would suggest that you take pictures of the damage you discovered.  Then, get your contractor to give you a written, dated, signed statement as to his opinion of the damage, along with his estimate to correct all damage AND also correct the problem where the water is entering.  Finally, ask the neighbors to give you written statements as to what they previously told you.

If you want to try collecting from the former owner before retaining a lawyer, you might first send a certified letter to the previous owner with a demand that he pay for all repairs.  Since it appears that he misrepresented the property condition to you, don’t expect him to simply cave in.  People like that know how to “work the system.”

You might want to do a little investigation of your own about the previous owner.  If he has no assets, all you might likely end up with could be a Judgment of Record.

You said you had an inspection … did the inspector recommend that you have a contractor to further evaluate the damage he discovered?  That would have been the prudent thing to do at the time of the initial disclosure, but if you did not, there is nothing you can do about that now.  I understand that you were relying on other people to be honest and advise you, and hindsight is always 20-20.

If you had an agent representing YOU, your agent should have suggested further evaluation after the inspection revealed water damage.  This is another question for which you would need legal advice on -- and whether or not an agent representing you has any liability.

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

Regards,
Elizabeth