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Advice Needed - Possible Recourse on Non-disclosed Issues

1,520 Views | 7 Replies | Last: 6 yr ago by Kenneth_2003
bkag9824
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AG
Pertinent facts:
  • Closed on mid-90's home in BFE NW Colorado late June this year
  • Previous owners DID NOT disclose any areas of known or potential water damage
  • Previous owners DID NOT disclose any areas of concern on the foundation aside from one upstairs door that had a minor stick to it
  • Inspector DID NOT note any water damage or POTENTIAL water damage
  • Inspector DID NOT note any potential areas of concern on the foundation (other than sticking door)
  • Inspector called out a couple of relatively minor issues (tighten a toilet, add a support post under the elevated deck, replace a couple sections of gutters)
  • Inspection was completed while I was in Houston and had to rely on the inspector's honesty/competency and my realtor (competency is questionable at best and was also the listing agent).
  • I did a post-inspection / post-option walk-through of the home less than 4 days before close (late due to work scheduling and inability to travel up prior to). I noted one decent vertical crack in roughly the middle of one of the long sides of the house (house is a perfect rectangle). I queried the previous owner if they knew about it, and he acted surprised. I didn't notice any other major cracks or sticking doors, no cracks moving at angles away from doors/windows, etc.
  • The majority of homes in this tiny town have foundation issues of varying degrees. One home I looked at had almost 3" of slope. It is essentially accepted here that foundations are a problem...just how bad.
Now the fun part:
  • Upon moving in, I found 4 additional vertical cracks (small and not as large as the first) at various points of the home where the previous owner had furniture or photos placed during inspection. The staging of the home looked like a typical home.
  • I knew 1 door had a minor stick to it, all other doors opened normally prior to closing.
  • Three doors now stick.
  • There are obvious areas of slope in different areas/directions that I did not notice during the first three visits to the home.
  • I did not change anything in regards to watering schedule after the sale. Homeowner left everything the same. Weather this summer was typical of the area according to numerous locals.
  • The previous owners spackled/grouted over a section of the upstairs bath, and it was obvious that moisture had crept behind the tiles as they had buckled. I do not recall as having seen the spackle/grout job during the walk through, but I also do not recall as having specifically checked. Having purchased two homes before, I make a point to look at all the major areas. Again... the previous owner nor the inspector called out any areas of potential water damage.
  • Within 1.5 months of living in the home, the upstairs cold water knob stuck/broke, flooding behind the wall and part of downstairs.
  • During shower demo I found rather extensive water damage in the area where the spackle/grout job was. The wood is essentially brittle junk that absolutely has to be replaced prior to placing new backer/tile. This is no longer a relatively simple job of replacing tile, as there is a window in the bath area that will need to be removed/reset after the framing is replaced, have to pull the bathtub completely, etc. etc. etc.

That's a lot of words to build a scenario in which I feel more and more strongly that the previous knew about the foundation issues as well as the potential water damage behind the tile (why else would they do a grout job?) and knowingly withheld information that likely would have swayed my decision to purchase the home. If nothing else, I would have gone to greater lengths to inspect the home, etc.

I hate even thinking of litigious matters, but I really don't believe the previous owners acted in good faith, nor do I believe the inspector did a good job of representing my interests.

What recourse, if any, do I have?
Bitter Old Man
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AG
Not sure about Colorado law, but I believe you are going to have to prove that the owners KNEW about the issues. That's going to be hard to do, especially given that the damage was concealed behind a tile wall that may or may not have been accessed before.

Given that its in BFE, I would expect construction quality to be an issue, especially in that vintage of a house.

I would guess that you are SOL. I'm not a lawyer, nor is this legal advice.
dubi
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AG
We purchased two 1960's homes. Both master baths had water intrusion problem behind the "original" tile. It was not disclosed, but IMHO bathrooms have a lifespan of x years and you are really guaranteed there is water leaking.

As to the foundation, this is where i think you goofed. You saw the one vertical problem and could have hired a foundation guy in addition to the inspector. You did not.

I suspect you will have trouble proving intent on their part.
dallasiteinsa02
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I would start by calling every foundation repair person within 100 miles to see if they have inspected the home. You would be surprised how many times people have called people out, gotten a report showing the issue and failed to disclose.
normaleagle05
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AG
bkag9824 said:

had to rely on the inspector's honesty/competency and my realtor (competency is questionable at best and was also the listing agent).

THIS is where you goofed!
bkag9824
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Didn't have much choice unfortunately. Work wouldn't let me travel back, tiny town with very few decent homes (this was the best available).

Only option was to back out last moment & live in a bunkass trailer for who knows how long, then move again once a better house popped up (none have since we began the search in Feb of this year).

Appreciate the responses.
AggiePlaya
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AG
If the realtor was the listing agent, she wasn't really "your" realtor and didn't represent your interests
bkag9824
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AG
Agreed, but due to corporate relo policies she was the better of the two choices.

It's not an ideal city to be moved to under the corporate policies due to their restrictions, but it was for a very good job.

Short term pain, long term gain is the hope.
Kenneth_2003
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AggiePlaya said:

If the realtor was the listing agent, she wasn't really "your" realtor and didn't represent your interests
At that point doesn't the realtor become nothing more than an intermediary? Doesn't represent either party...
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