Do we have a case against sellers who flipped our home?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Do we have a case against sellers who flipped our home?
Sellers flipped a property and had it for 4 to 5 months. They had mold remediation done and said in disclosure that there was no water in basement. They made a finished basement and did not do correct water proofing. Then 3 weeks after purchase and settlement of the home, we the buyers already have water in basement. Entire areas of carpet are soaked which appear to come from the bottom up. Quotes from professionals state that basement waterproofing is needed and quotes range in price from $5,000 to $17,000. We believe this could not have been first time basement had gotten water. Do we have a case to fight them for damages? They are stating they had no knowledge of water and will not pay any damages.
Asked on February 26, 2018 under Real Estate Law, Pennsylvania
Answers:
S.L,. Member, California Bar / FreeAdvice Contributing Attorney
Answered 6 years ago | Contributor
You can sue the sellers 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 purchased the house had you known of the basement flooding.
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 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 price paid and 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.