What do you do if you are sued by the buyer of your home, 2 years after the sale for nondisclosure? Disclosure completed to the best of our knowledge

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What do you do if you are sued by the buyer of your home, 2 years after the sale for nondisclosure? Disclosure completed to the best of our knowledge

The buyer is suing us for $40,000 for damages 2 years after the sale:1. Roof – says we failed to disclose material defect to the roof. The roof never leaked!2. Drainage – Says the house and land are not fit for intended use. They say there is flooding and water under the deck – causing the basement to flood – we finished our basement – never flooded the basement. 3. Electrical intake found to be defective in the oringinal inspection. We had it fixed – they say it was not fixed and we represented that it was. They are suing us for $40,000 in damages for the 9 year old home.

Asked on May 14, 2009 under Real Estate Law, New York

Answers:

J.M.A., Member in Good Standing of the Connecticut Bar / FreeAdvice Contributing Attorney

Answered 12 years ago | Contributor

I just finished litigating a case like this in CT.  It went on for 2 years and our client spent at least 20K in legal fees.  The good news was that we were able to refer it to the client's homeowner's insurance carrier to pay the settlement.  These cases are constantly litigated.  The fact that you never had problems before is a good thing and it may just be that the owners are trying to take advantage of you.  You are going to have to try to refer this to your carrier.  You may indeed have a great defense, but you are going to have to spend the time to prove it.  Do not delay sending this to your carrier as late notice could be a basis for them to deny coverage.  Obtain all the copies of the inspection report and provide it to your lawyer, including the sales contracts.  I wish i could be of help as I got my client out of this very cheaply. 


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