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Seller Disclosure

  • Thread starter Thread starter mcboss
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mcboss

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I bought a single family ranch style house in Colorado in 1998. I recently had three general contractors look at the house for an estimate on new work I want done. All three contractors expressed concern over the prior work done in my basement. They all claimed it was not up to code and probably was done without a permit. They were all hesitant to do the new work I wanted done. They fear the city may require the basement be brought up to code when they submit a new permit for their work. This would be a significant additional cost.

The four issues in question are:

First, two bedrooms in the basement are too small to be considered bedrooms and the house should not have been sold as a four bedroom house.

Second, is that there aren't enough recessed windows to provide escape incase of fire.

Third, the bathroom does not have ventalation.

Fourth, the floor is not a floating floor which in the future may cause structural damage.

Based on the severity of some of the issues, whose responsibility was it to disclose this information? I beleive I should have been made aware that the basement was finished without a permit and possibly not to code prior to my purchase. It certainly would have made a difference to me. I beleive the inspector should have reconized these issues when he did his inspection? Also, the seller or their realator should be liable to disclose this type of inforamtion?

I will obviously have to bring the basement up to code now or when I decide to sell. What are my options now for financial assistance to bring the basement up to code?
 


HomeGuru

Senior Member
You are correct with respect to the disclosure issues. The home inspector should have pointed out the red flags but the home inspection is not a building code type of inspection.
You should talk to a real estate attorney about filing a disclosure lawsuit against the Seller, Seller's Realtor and the home inspector.
Check your appraisal to see what was stated with respect to the basement. If the basement had no permit, then the appraiser should not have counted this space for valuation purposes.
 

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