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Seller lied in sales disclosure. What options do I, the buyer, have? Please read details below...?

When we first saw the sales disclosure, the seller indicated that the plumbing had no defects. Upon inspection, we learned that the pipes leading to one shower had been cut and the water was turned off. This is because there had been a leak and the floor under the shower rotted as a result. Secondly, the seller indicated that he was not aware of any damage due to termites. The inspection yielded damage in more than one place. We've yet to determine the significance of the damage, but the seller knew it was there, because he's the one who discovered it and, ultimately, placed the house under contract with a pest control company. Now I'm wondering what my options are, because I'm ready to walk away, but I know he'll try to keep my earnest money. Shouldn't he be responsible? By the way, his agent is my agent. She's obviously on his side, so she's of no use to me.

Update:

By the way, I'm in Indiana if that helps.

8 Answers

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  • 1 decade ago
    Favorite Answer

    It will be pretty hard for him to convince any judge, if it goes that far, that he didn't know a shower didn't work, which would be a plumbing defect. It will be harder to prove that he knew about the rotted floor or the termite damage at the time of disclosure, since a termite inspection is standard when a house is sold. But you do have him on the plumbing, and the agent is unprofessional and should be reported if she backs him on keeping the earnest money in the face of these problems. You may have to take him to court, but you should have a strong case to get your money back.

  • CG
    Lv 6
    1 decade ago

    Ooooo....never share agents. Actually, most times they will offer to have another agent at their company fill in for them to rep you (or did you sign something already?)

    I would tell the agent just what you said. Walk away (run!). If she threatens to take away your earnest money, then you will need to obtain a lawyer and sue. Hopefully she is more ethical than that. Most times when you do get a home insepcted, the contract is contingent on the inspection, therefore your earnest money is not threatened anyway.

    But a few years ago we had buyers fully committed, passed the inspection and everything. They said they could not settle (could not sell their house due to a bad roof) and we said "oh, well,we'll keep the earnest money"...legitimately, and our agent told us that no one really does that so it was given back!

  • ?
    Lv 6
    1 decade ago

    You have a couple of options.

    Obviously there was something that attracted you to the house, whether it's the price or the location. Frankly, none of us like dealing with a liar.

    1. Get someone to give you an estimate of the cost of total repair. Present this to this and give a deadline on when it is to be fixed or re-negotiate the price of the house.

    2. Ask for a return of earnest money, via the contract terms.

    3. Inform the Realtor that you will be reporting him/her also

    if unethical violations have occurred.

    Your contract likely says that you will agree to mediation to avoid court costs. Tell them that if you don't receive the money by a certain date, that you will move forward with the courts appointing a mediator.

  • Zen
    Lv 4
    1 decade ago

    You have the right to sue both of them. I would tell them they can keep your ernest money and you'll see them in court or give you back every penny you've put out so far and call it a wash. Put the ball back in their court because they (seller and realtor) both knew better and, under the law, they are guilty of fraud and nondisclosure. You can take them both to small claims court, separately (2 separate cases) and you won't have to pay a lawyer. If you win (which it sounds like you have a good case) you can request that they pay the court costs.

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  • 1 decade ago

    Re-read your "offer to buy" it should have had a contingency upon inspection clause.

    Although your agent is his, she should still be interested in your interests, if not she's not acting ethically.

    He shouldnt be able to keep your earnest money since the house failed the inspection.

    Source(s): none. I've bought a home before. No real real-estate experience.
  • 1 decade ago

    That is fraud, you don't have to complete the sale, you are entitled to your money back completely.

    If he won't cancel the deal and give all your money back, tell him you will sue for all of this, plus damages, and have him charged with fraud.. He will buckle pretty fast, if not see a lawyer, YOU DO NOT WANT THIS PROPERTY

  • 1 decade ago

    Seems to me it's time for you get to an attorney. Best of luck to you.

  • Anonymous
    1 decade ago

    Thought you had to get it inspected first to be legal hmmm.

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