Is there a statute of limitations on when I can sue a previous homeowner?
Question Details: We are trying to sell our home but the backyard floods and it is causing us issues. It is obvious that this is been an issue for many years and the previous owner said in their paperwork there was no flooding problems. Do I have a viable case to sue them for the class to install a drainage system? We have been here for 3 years.
The statute of limitations in NJ for filing a lawsuit for fraud against the previous owner is six years. It is unlikely that you would be able to compel the previous owner to install a drainage system.
In this type of case, you can recover 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 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 actual value of the property acquired.