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Owners on disclosure did not identify drainage issues on side of the house and I only was able to identify problem due to pouring down rain the day inspector came. I installed a French drain and found out form neighbor that the water had been high enough last year to enter the house, hence flooding the rooms on that side of the house. They did not indicate this on the disclosure either, that there had been water in the house. They had put in new carpet in the rooms. Now that I changed the moisture issues under the house I am experiencing some settling on the slab foundation and cracks in the house. Also, they did not disclose any issues with cracked hardy board on the outside of the house that inspector noted. I am concerned as to what issues might arise due to this as time passes. What do I need to do to question them not disclosing the issues on their report?

Asked on October 13, 2016 under Real Estate Law, Texas


S.L,. Member, California Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

You can sue the seller for fraud.
Fraud is the intentional misrepresentation of a material fact made with knowledge of its falsity and with the intent to induce your reliance upon which you justifiably relied to your detriment.
In other words, you would not have bought the house had you known the true facts.
Fraud is also applicable in cases of nondisclosure where the buyer could not have reasonably discovered the true facts prior to purchase.
Your damages (monetary compensation you are seeking in a lawsuit for fraud) would be either the benefit of the bargain or your out of pocket loss.
Benefit of the bargain means the defrauded purchaser can recover the difference between the real and represented value of the property regardless of the fact that the actual loss suffered might have been less.
Out of pocket damages for fraudulent misrepresentation permits recovery of the difference between the price paid and the actual value of the property acquired.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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