Can you sue for non-disclosure of a flooding basement?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Can you sue for non-disclosure of a flooding basement?
Home was bought from another company employee (2 years ago) and this individual did not tell us the basement was flooding prior to us buying the home, we later found out he did know and tried to cover it up. We did have a home inspection. The home owners wife was there during the home inspection and I feel the wall with the leaking was covered up by items in the basement so that it was hidden from sight. Today, the foundation is showing water coming through after heavy rains last night.
Asked on April 30, 2012 under Real Estate Law, Kansas
Answers:
S.L,. Member, California Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
You can sue the seller for fraud. Fraud is the intentional misrepresentation of a material fact made with knowledge of its falsity and with the intent to induce your reliance upon which you jusitifiably relied to your detriment. In other words, you would not have purchased the house had you known about the basement flooding. You justifiably relied to your detriment on the owner's intentional misrepresentation.
Fraud also applies to to the seller's nondisclosure of a material fact which the buyer could not have reasonably discovered such as your situation where the seller did not disclose the flooding in the basement in order for you to buy the house.
Your damages (monetary compensation you are seeking in your lawsuit) for fraud would be either the benefit of the bargain or your out of pocket loss.
Benefit of the bargain means 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 means the damages for fraudulent misrepresentations permits recovery of the difference between the price paid and the actual value of the property acquired.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.