What do I do if I found an issue with my house after I move in and that the previous owner knew about?
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What do I do if I found an issue with my house after I move in and that the previous owner knew about?
I recently moved into a home just over a week ago and found out that there’s a large rat problem that will cost $5,500 to repair and seal. The sellers knew about this issue they had rat traps in the attic but did not disclose on the sellers’ disclosure. Our home inspector did not notice the issue either. Our realtor’s did not advise us on if we should get an additional rodent inspection. Do we have any legal recourse?
Asked on June 22, 2017 under Real Estate Law, Texas
Answers:
S.L,. Member, California Bar / FreeAdvice Contributing Attorney
Answered 7 years ago | Contributor
You can sue the seller for fraud. Fraud 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 rat infestation.
Your damages (monetary compensation you are seeking in your lawsuit for fraud against the seller) 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 determination of damages for fraudulent misrepresentation permits recovery of the difference between the price paid and the actual value of the property acquired.
You can sue the home inspector for negligence for failing to find the rat infestation. Negligence is the failure to exercise due care (that degree of care that a reasonable home inspector would have exercised under the same or similar circumstances to prevent foreseeable harm). Your damages would be the foreseeable consequences of the negligent inspection such as the cost of repairs.
You would file one lawsuit naming both the seller and home inspector as defendants.
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