REAL ESTATE LAW PEOPLE IN THE KNOW...

[soonerinabilene]

I got this email from a good friend of mine:


We just closed on our home last week. Already, our water pump has had to be replaced, our septic system is malfunctioning and our home owners insurance is over $50 higher than we were originally quoted. Here is my question-the seller (on his disclosure form) did not state that there was previous water damage to the home (which affected our insurance premium), and also failed to mention the pre-existing problems with the water pump and septic.

Do I have any recourse or am I stuck?

I figured there might be someone here who could give me some advice to give back to them.

TIA

[boomersooner28]

They could have recourse if they want to pursue legal action, BUT they would have to PROVE that the seller had knowledge of said problems.

I am going through almost the same thing as we speak. Although I am the seller. When I purchased the house I am selling (1 year ago), nothing was ever mentioned about a couple of the feet in the back of the property being in a flood plane, a survey was done and everything...my lender didn't require flood insurance, nothing, nada, zip. Now, we were in contract to sell this house and all of a sudden it's in a flood zone and the buyers backed out at the last minute and want me to pay for the inspections and appraisal. BUT, I did not have prior knowledge of the problem. It could go to arbitration. What a pain in the *** real estate is.

[Soonerus]

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[Sooner24]

I got just two words for you......Title Insurance.

[CrimsonandCreamForever]

Pretty much what 28 said. You have to prove that the seller had knowledge of the problem(s) and lied about it on his disclosure statement.

[Okla-homey]

Funky word hardly anyone outside of the legal community uses, but, scienter on the part of the seller regarding his deliberate failure to disclose known defects generally needs to be demonstrated in most states on these dealios.

scienter(adverb): Knowingly. Having the requisite knowledge of the wrongness/illegality of an act or conduct; guilty knowledge; knowing the impropriety/illegality associated with doing certain acts.

Here's the thing though, your friend ought to be able to buy an hours time from some lawyer is his community, bring his contract to that meeting, and have a very good idea where he stands at the end of that time.

[Okla-homey]

I got just two words for you......Title Insurance.

not really. most title insurance policies merely afford some protection if turns out the title is clouded. They don't pay just because the buyer discovers undisclosed mechanical or structural problems with the building itself. Perhaps you're thinking of home warranties.