What is our recourse regarding non-disclosure of several issues?

UPDATED: Oct 1, 2022

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What is our recourse regarding non-disclosure of several issues?

We purchased a home and based on the disclosure provided to us it stated that the seller had termite treatment but only for maintenance. We got into the house and found documents from termite infestations that were ongoing. We also have damage to the concrete floor that is an interior floor cracked and that is where the spot treatment was done around the entire perimeter of the concrete slab. The bugs are coming through the slab now and they have had continuous treatment for that which was not disclosed. Also, we found black mold in the bathroom all over the walls and in other areas of the home. The garage walls have to be taken down due to the mold and 2 bathrooms. Can we get out of this house or are we stuck? We can’t afford to fix it up and we spent our life savings on a down payment. We closed on it about 5 days ago. There was no escrow due to our down payment. The home purchase price was $607,500. With a mortgage and not being able to rent our mobile home out due to not being able to move, we have no money to fix anything.

Asked on April 9, 2019 under Real Estate Law, Texas


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

Non-disclosure of serious issues known to the seller are fraud, and can provide a basis to get out of the sale: to void it--you give house back and get the money, including the mortgage money (which has to returned to the bank) back. The problem is, if the seller has spent or lost or is hiding the money you paid him, you will still owe on the mortgage and will also be unable to void the transaction, since you it can only be voided if you get back what you paid.
You may be better off suing the seller for the cost to repair these conditions, since fraud is not just a basis to void a contrat, but is also a basis to seek compensation.

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