Seller Failed to Disclose Important Information

Q: I’m buying a home and my insurance agent found a prior claim for water damage that the seller didn’t disclose. What should I do?

A: Sellers and their agents are required by law to disclose any facts about the house that materially affect it’s value. If you work within the timelines of your contract, there’s plenty you can do.

Whether it’s a home, a flip, or a future rental, you have a right to know all there is to know about the condition of the house. An inspection may not reveal everything. It’s the sellers responsibility to be transparent.

Give them the benefit of the doubt: Depending on how long ago the claim was filed, and how well it was repaired, the seller may have forgotten all about it. They may not have even mentioned it to their agent.

Make a formal request for disclosure: Request an explanation for the claim including what was damaged, how the property was affected, who repaired it, and how it was repaired. This explanation should be returned to you in writing and should be signed and dated by the seller.

If the repairs were done properly and according to code, you should have no trouble getting this information from the seller.

If you’re not getting a response, or the response is vague, there might be a larger problem. Have the site of the damage re-evaluated by a licensed contractor to get the information that the seller isn’t providing.

Consider your options: At this point you can

• Accept the house the way it is
• Renegotiate with the seller to either have the damage repaired properly or to give you credit at closing to have it done yourself.
• Cancel the contract and find another house.

When it comes to non-disclosure, the normal deadlines for inspection and discovery don’t apply. If you find out the seller hid important information, you have recourse - even after you’ve bought the house. A good agent will help you understand your options.

You know the one! Call me today to help you negotiate for a house you can love.