What is my recourse if the seller failed to disclose water problems?
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What is my recourse if the seller failed to disclose water problems?
Purchased a house and closed early last month. I understand it takes proof
to show that the sellers lied by checking no water infiltration on the disclosure form. You’d have to be blind not to see the issues. The back utility door leaks; it needs replacement and with the frame is rotting, likely more. Also, the bottom of the utility door is missing the seal. Water in most rain storms seeps in. The corner of the garage as pooled water in the corner. I let the realtor know first. I’m trying to get estimates on the issues in the meantime. Do we have a case?
Asked on July 24, 2018 under Real Estate Law, Pennsylvania
Answers:
S.L,. Member, California Bar / FreeAdvice Contributing Attorney
Answered 6 years ago | Contributor
You can sue the seller for fraud which is the intentional misrepresentation or nondisclosure of a material fact made with knowledge of its falsity and with the intent to induce your reliance upon which you justifiably relied to your detriment.
In other words, you would not have bought the house had you known of the water leaks.
Your damages (monetary compensation you are seeking in a lawsuit) for fraud would be either the benefit of the bargain or your out of pocket loss.
Benefit of the bargain means that a defrauded purchaser may recover the difference between the real and represented value of the property purchased regardless of the fact that the actual loss suffered might have been less.
Out of pocket determination of damages for fraudulent misrepresentation permits recovery of the difference between the price paid and actual value of the property acquired.
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