Buying real estate means accepting responsibility for not just the purchase price of the property but also its maintenance. Those looking to buy often review disclosure documents carefully and conduct personal inspections in addition to working with professionals to identify any issues with the property.
Despite those efforts, sometimes people only identify major issues with their homes after taking possession of the property. Sellers and the real estate professionals assisting them during transactions may go to great lengths in their attempts to hide known property defects.
In such cases, buyers worried about covering the cost of repairs or dealing with diminished property values may need to consider pursuing litigation against the seller, as well as the agent who represented them during the transaction at issue.
Are there signs of attempts to hide damages?
Sellers listing real estate for sale generally have to fill out thorough disclosure documents. They cannot simply claim they are unaware of defects or list the property in as-is condition and wash their hands of responsibility. They have to provide accurate information regarding the status of various critical systems within the home.
Inaccurate disclosures open the seller and their agent up to legal action. Proof of inaccurate disclosures, combined with proof of a cover-up, can be enough to prevail in a lawsuit brought on the basis of material misrepresentation of the property’s condition.
For example, perhaps there is substantial water damage to the subfloor between the top story and the ground level of the home. A leaky shower or toilet may have caused tens of thousands of dollars in damage. Instead of replacing the subfloor and joists as is likely necessary for structural integrity, the sellers may have simply patched holes and painted over everything.
Buyers may eventually see warning signs of the ceiling sagging or mold development that alert them to the presence of hidden water damage. That damage could then require costly demolition work and major repairs. If the buyer can show that the seller was aware and intentionally hid those issues, they may have grounds for litigation.
How does a lawsuit help?
A lawsuit brought against a seller and possibly their agent can lead to financial compensation for homeowners. They could request compensation for the cost of necessary repairs or for the diminished fair market value of the property.
The sellers may be directly liable in some cases. Other times, their agent may be liable. If a real estate professional assisted with the cover-up and allowed the seller to misrepresent the property’s condition, there may be professional insurance to help cover the buyer’s losses.
Reviewing disclosure documents and details about the hidden damage with a legal professional can help frustrated buyers explore their options. Pursuing real estate litigation can be an appropriate reaction to sellers intentionally lying about the condition of real property.