What are our rights as new homeowners if the sellers failed to disclose that the basement floods when it rains?
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What are our rights as new homeowners if the sellers failed to disclose that the basement floods when it rains?
We have proof that they knew about it because we have a receipt for a sump pump they purchased and took with them when they sold the house. What can we do?
Asked on September 18, 2015 under Real Estate Law, Pennsylvania
Answers:
S.L,. Member, California Bar / FreeAdvice Contributing Attorney
Answered 9 years ago | Contributor
You can sue the sellers 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 justifiably relied to your detriment.
In other words, you would not have bought the house had you known about the basement flooding.
Fraud also applies in cases of nondisclosure of a material fact by the seller which the buyer could not have reasonably discovered prior to purchase.
Your damages monetary compensation in a lawsuit for fraud against the sellers 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 damages monetary compensation for fraudulent misrepresentation permits recovery of the difference between the price paid and the actual value of the property acquired.
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