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Failure to disclose known defect

3,400 Views | 18 Replies | Last: 7 yr ago by Pepper Brooks
MouthBQ98
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AG
We bought a house about 2 months back and it has a relatively new aerated septic system installed, with tie ins to two sewer lines from the house. Everything passed an initial inspection, and we had the septic system checked by the service company. About 2 weeks after we moved in, we started having trouble with the sewer lines backing up. We called out the septic guys again and they verified the system is working properly. They suggested calling a plumber as it appeared to be a sewer pipe issue. I called a local plumbing company, and to keep this shorter when they came out, they said they had been out to the property to clear s blockage just a couple months before, and discovered a belly in the sewer lines to the septic system, and provided the sellers we bought from an estimate for repairing it.

The seller never disclosed that there was a known sewer line issue to us.

What are my options here? That is something they are required to disclose, right? We have sent them a letter via their realtor requesting they pay for the repair based on a detailed estimate we had that same plumbing company provide us, but have heard nothing back.

I really hoped to avoid this becoming a legal matter but failure to disclose a known defect is kind of akin to fraud, is it not?
powerbiscuit
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MouthBQ98 said:

We bought a house about 2 months back and it has a relatively new aerated septic system installed, with tie ins to two sewer lines from the house. Everything passed an initial inspection, and we had the septic system checked by the service company. About 2 weeks after we moved in, we started having trouble with the sewer lines backing up. We called out the septic guys again and they verified the system is working properly. They suggested calling a plumber as it appeared to be a sewer pipe issue. I called a local plumbing company, and to keep this shorter when they came out, they said they had been out to the property to clear s blockage just a couple months before, and discovered a belly in the sewer lines to the septic system, and provided the sellers we bought from an estimate for repairing it.

The seller never disclosed that there was a known sewer line issue to us.

What are my options here? That is something they are required to disclose, right? We have sent them a letter via their realtor requesting they pay for the repair based on a detailed estimate we had that same plumbing company provide us, but have heard nothing back.

I really hoped to avoid this becoming a legal matter but failure to disclose a known defect is kind of akin to fraud, is it not?
Look at the seller's disclosure if you got one. Sometimes it is posted in the listing under other documents.

That disclosure statement says something about the requirements for disclosing information. I'm not a lawyer and haven't read the statement recently, but it does say something about disclosing known defects.
Copp
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How much will the repair cost?

Was the defect disclosed on the Sellers Disclosure Notice?

Unfortunately it is often more costly to litigate than it is just to repair the issue. You could always have an attorney send a demand letter but that will be at least a few hundred bucks.
MouthBQ98
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AG
$2000, or an entire weekend of my time with a shovel, calling in some favors, a couple cases of beer, some pizzas, and about $150 in 3" SCH40 PVC parts.
MouthBQ98
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AG
We don't see any reference to it on the disclosure.
powerbiscuit
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MouthBQ98 said:

We don't see any reference to it on the disclosure.
Isn't there a statement at the end of the disclosure that states that they affirm the document is correct and things of consequence have not been omitted? I think it is near the signatures.
MouthBQ98
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AG
It's my understanding things like plumbing defects that are known and not disclosed commonly fall under TDTPA and so they would have had to disclose if known.
histag10
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AG
Copp said:

How much will the repair cost?

Was the defect disclosed on the Sellers Disclosure Notice?

Unfortunately it is often more costly to litigate than it is just to repair the issue. You could always have an attorney send a demand letter but that will be at least a few hundred bucks.


When we looked into this, the lawyers suggested we sue for failure to disclose and breach of contract, and ask for the cost to fix issue + 10% and legal fees.

Ultimately, we didn't do anything. Had issues finding a lawyer in the area,and once we did, the time to pursue failure to disclose had passed, and they wanted $5500 for retainer on breach of contract
MouthBQ98
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AG
So the lawyers priced themselves out of the market? Genius.
histag10
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AG
MouthBQ98 said:

So the lawyers priced themselves out of the market? Genius.


Once I started working my current job, I realized that when they ask for $5,500 in retainer, it basically means they will take the case, but would rather not. But if you are willing to fork over the money, they will happily do it.

Everyone told us they would have taken the failure to disclose on contingency, because our evidence was pretty solid (water was literally coming through the walls in our basement, we have it all on video), but the statute of limitations here is 2 years. We bought in the winter, so 7 months before we had thawed ground and rain to show this, and then we could never find a lawyer in our area (the only one in the area had previously represented the sellers). About 6 months ago a lawyer friend asked us to send him the info, and the $5,500 is what his boss said on the breach of contract, and we took a hard pass.

Spent the money to put up gutters, regrading our yard this spring, and hopefully that will at least help the issue. House is so old no one will touch the foundation for fear of it collapsing on itself if they dig down around it, to fix the issue from inside would be roughly $25k (at least that is what we were quoted at the time).



TLDR- If you can sue for both failure to disclose and breach of contract, some lawyers will take it on contingency, because at that point, it is worth their time. If it is one or the other, you will likely have to pay a hefty retainer to get it done.
aggiepaintrain
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AG
Send another letter, I am not a lawyer but I would put in BOLD, if not resolved to my satisfaction I will take legal action against ALL parties receiving this letter. The realtor might get them to at least respond.


I imagine you could take them to small claims court and win quite easily.



Martin Q. Blank
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Quote:

I called a local plumbing company, and to keep this shorter when they came out, they said they had been out to the property to clear s blockage just a couple months before, and discovered a belly in the sewer lines to the septic system, and provided the sellers we bought from an estimate for repairing it.
That's random luck that you called the same plumbing company.
Agilaw
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AG
Mouth: Let me know how to get in touch with you if you'd like to discuss.
HomeFinderCody
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Sponsor
AG
I think it's so great that you called the same plumbing company. When you bring to attention of Seller it will be a "Oh, ****" moment for them.

Dishonest people drive me crazy. This doesn't seem like something they would just forget to disclose.

I'd reach out to their agent as well.....maybe the agent can convince them to do the right thing.
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MouthBQ98
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AG
I am selling at the same time and I am almost paranoid that I have remembered to disclose everything. I hate to press the issue to the extent of legal action, but that's a lot of money and my wife is more focused on the principle of the thing.

Frankly, it is well with my abilities to fix, but I shouldn't have to do it.

It is dumb luck I called the same plumber. First thing the guy that comes out says is "I remember this place. We were just out here"

agi, can you PM me? I think stars might be needed for that, right?
Agilaw
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AG
Yes. Need stars. I have talked with several others from TA, they posted a contact and then removed it when I let them know I had contact info. Let me know.
Absolute
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AG
Does seem pretty clear cut in this case. Where to draw the line on disclosure gets a little gray I think. But a few months before, with a 2k estimate they choose not to do seems like what the document is supposed to protect against. Too bad enforcement falls to you.
MouthBQ98
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AG
ajgorney@sbcglobal.net

I really hope they settle and take care of it. I'd like to keep things cordial and reasonable.
Garrelli 5000
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AG
Different scenario but does show that there are still honest people out there...

One of my friends purchased a home from a seller that lived out of state. The seller had owned the home solely as a rental property therefore had never resided in the location.

My friend learned over time that there was roof damage. Her insurance wouldn't cover it because it occurred prior to her purchase. Insco suggested she get the previous owner to file the claim.

Once she got in touch w/previous owner they filed the claim. She worked out a deal w/them where she'll pay them their deductible costs.
Pepper Brooks
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AG
Prior owner came out on the good end of that deal. Id be willing to bet that the "final price" their roofer gave them happened to be the amount submitted to insurance less the deductible.
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