What to do if the seller failed to disclose a 24k water damage claim on the property that we made an offer on?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
What to do if the seller failed to disclose a 24k water damage claim on the property that we made an offer on?
Our insurer will not insure the property. Can we cancel the contract and get earnest money back due to non-disclosure or uninsurability with our insurer?
Asked on January 2, 2013 under Real Estate Law, Texas
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 11 years ago | Contributor
If the seller knew of substantial damage which has not been entirely repaired or corrected and failed to disclose same, then the seller may have committed fraud; fraud can provide grounds to rescind a contract, in which case you could both escape it and get your earnest money back. (If the damage was fully repaired, and the condition which caused it has been completely remediated or corrected, this would most likely not be fraud--in that case, the condition, since it has been fully corrected, is not material, or significant.) You probably should let a lawyer help you with this, since making out a claim for fraud, if the seller refuses to voluntarily rescind the agreement, is not always easy.
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 AttorneyPages.com 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.