Liability of Mortgage Holder for non-disclosure

[FutureMon]

Home is in California.

I put a bid on a house in 1995. After the bid had been placed, the lender foreclosed on the seller, thus changing my contract to an "as-is" purchase.

The bid was accepted by the bank, and I purchased the home.

10 years later, I discover that the property is on a septic system - not on the city sewer. I recall the seller telling me that the home was on the city sewer, and there was no disclosure in the loan paperwork indicating that it was on a septic system.

The seller has since died, and I am wondering if I have any recourse against the original lender based on the non-disclosure of the septic system. Curious if I can sue for the costs of moving the home onto the city sewer.

 

[seniorjudge]

Home is in California.

I put a bid on a house in 1995. After the bid had been placed, the lender foreclosed on the seller, thus changing my contract to an "as-is" purchase.

The bid was accepted by the bank, and I purchased the home.

10 years later, I discover that the property is on a septic system - not on the city sewer. I recall the seller telling me that the home was on the city sewer, and there was no disclosure in the loan paperwork indicating that it was on a septic system.

The seller has since died, and I am wondering if I have any recourse against the original lender based on the non-disclosure of the septic system. Curious if I can sue for the costs of moving the home onto the city sewer.

I recall the seller telling me that the home was on the city sewer, and there was no disclosure in the loan paperwork indicating that it was on a septic system.

I suspect you have no case because the statute of limitations probably ran years ago. But, if I am wrong about the SOL, then I would have to ask if the contract for sale from the mortgage company guaranteed you that there was a public sewer system serving the land?

Generally, the seller cannot guarantee that the land is or will be served by a public utility. (Obviously.)

I must also ask: Why did it take you ten years to discover you were not on a sewer?

 

[FutureMon]

I must also ask: Why did it take you ten years to discover you were not on a sewer?

Thanks for the prompt reply.

It took 10 years because everything was fine until we started having overflow into the sink and the bathtub. After having plumbers out several times in the course of a year, I went to the city to check. Turns out they have no record of the property ever being converted.

There was a suspicous looking "square" in the driveway concrete (more like lines drawn on a fresly poured driveway), and after digging down 4 feet from there we found the septic tank. Called a company and had it pumped and things have been okay since then. However, I am worried about the leach field. Being that the tank is on my driveway, and my driveway is at a 10 degree angle (see http://www.futuregroup.com/driveway.jpg ) either the leach field is underneath the family room, or it's underneath the city street. If it's underneath the family room, and there is ever a major problem, they may have to tear up the house to fix it (or switch me to city sewer before there is a problem).