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Dear George: I sold a house that had previously flooded. I filled out the disclosure and sold it as is. The house flooded again a year after the new owners purchased the house. At first they tried to sue us for not disclosing that the house floods. After receiving the proof that they signed all documentation, they then changed the suit to be the house was not properly fixed and/or might have mold.
What can I do to help prove that I fixed everything to the best of my ability and had no knowledge of mold? It has been almost 10 years since it flooded when I owned it and since I lived in the home.
Answer: Sometimes, despite doing everything “the right way” in a real estate transaction, a seller gets sued for not disclosing something about a property, especially when the property is purchased as is and the buyer does not understand the legal effect of an as-is purchase. When that happens, the seller must hire an attorney to provide the seller’s defense.
Dear George: My 23-year-old son and I looked at residential properties for him as a first home two weeks ago with a Realtor. Before looking at properties, she had him sign two or three forms that were explained as the "Realtor's responsibility to the buyer and the seller."
A week later, he found another property that had been repossessed by a bank. He made an offer on it. The first Realtor did not show us this property but claims that she is due a commission on it if we buy it. True or false?
Answer: You mentioned the first Realtor .... Was there more than one real estate brokerage firm showing your son properties?
We suggest that you read the contracts and/or other agreements that your son signed, and see what he agreed to. Those “two or three forms” that your son signed had titles and form numbers printed on each form, but without the titles or form numbers we cannot ascertain which forms they were.
Your allegation that the Realtor’s explanation was that the forms were “ ... the Realtor’s responsibility to the buyer and the seller” was, unfortunately, of no help to us.
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| Dear George: We are considering buying a home that advertises it has, "over one acre". There is a county drainage ditch that is 40' x 290' and about 10' deep and comprises approximately one-quarter of the land area. The owner disclosure states "no easements" and has several other false statements. The Realtor says this is accurate and will not have the statement corrected. How can they advertise it this way? Is this legal?
Answer: How badly do you want this particular property? If you don’t trust the seller or the seller’s Realtor, how can your purchase make any sense? It is almost like begging for a fight. We recommend that you hire a professional such as a Realtor (a different Realtor) to represent your interests as a buyer, or an attorney, or an engineer, or a surveyor, or some other licensed professional that you can hold accountable, and ask your questions as to advertising and whether their advertisements are “legal.”
Dear George: My husband and I purchased our first home nine months ago. On the seller's disclosure, they stated the roof was 13-15 years old. However, we have just received a letter from the Texas Windstorm Association requiring a WPI-8 certification in order for us to keep our windstorm insurance. Upon researching with TWI and the seller's insurance carrier, they say the roof was last installed in 1986, 21 years ago. We now have to replace our roof to keep our insurance. Do we have any legal recourse against the seller for lying on the seller's disclosure? If yes, what can we do?
Answer: Yes, you always have the ability to hold the seller accountable for statements made on the disclosure form. Your second question regarding what you can do about it is more difficult.
Have you communicated with the seller about this? What is on the Comprehensive Loss Underwriting Exchange (CLUE) report? A clue report on your property may be obtained from Choice Trust. Is it possible that the seller (and the roofing company) failed to report roofing repairs and/or installation made 13-15 years ago to his insurance company?
By communicating with the seller, you learn his or her side of the story. You might also learn that the seller is willing to pay for the “net cost” of your new roof (the cost you had to pay minus the cost you would have paid if the roof had been 13-15 years old). Otherwise, you can always sue the seller by proving the seller misrepresented a material fact on the seller’s disclosure, provided the seller has the financial ability to pay.
In the real world, however, the difference between the cost of a 13-15-year-old roof and a 21-year-roof-old might not be a winnable case considering the costs involved. If you sue, we recommend you hire an attorney with successful litigation experience in this type of real property condition lawsuit.
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