Seller Lied About Boiler

[DreRo]

What is the name of your state?What is the name of your state? PA

I bought an investment property with four units about 3 weeks ago. About 5 weeks ago, I paid a home inspector to inspect the property. He'd mentioned in the report that he wasn't able to test 2 of the water heaters and boilers because the units were vacant and the gas was turned off in those units.

I'd called one the sellers immediately to ask if they'd experienced any problems with the heating components in those units. He said that he didn't.

About 10 minutes later, one of the tenants came out of her unit to meet me and voluntarily informed me that she used to live in one of the units in question a few months prior but the heat stopped working and they moved her into her current unit.

I immediately called again and told him what I learned about that unit. He replied that it had been broken but he had it repaired recently and that "...it was fine".

FAST FORWARD>>>We close on the property, I get a lease signed and move a young family into that unit. They get the gas turned on and the heat doesn't work (in the middle of one of our weekly snow storms). Find out that the boiler is toast and it'll cost $2400.00 to get another one.

I call the seller again and he claims that I misunderstood him when he said "...it was fine". He was speaking of when another tenant (before the LAST tenant) was in that unit. He then mentioned that he did pay to have it fixed but neither he nor the repairman bothered to test it afterwards. I asked him for the repairman's number but he said it was disconnected. When I asked for his name or the name of the company, he claimed that he forgot and wished me luck on getting the tenants heat fixed in a timely matter.

Do I have any recourse in this situation?

 

[HomeGuru]

What is the name of your state?What is the name of your state? PA

I bought an investment property with four units about 3 weeks ago. About 5 weeks ago, I paid a home inspector to inspect the property. He'd mentioned in the report that he wasn't able to test 2 of the water heaters and boilers because the units were vacant and the gas was turned off in those units.

I'd called one the sellers immediately to ask if they'd experienced any problems with the heating components in those units. He said that he didn't.

About 10 minutes later, one of the tenants came out of her unit to meet me and voluntarily informed me that she used to live in one of the units in question a few months prior but the heat stopped working and they moved her into her current unit.

I immediately called again and told him what I learned about that unit. He replied that it had been broken but he had it repaired recently and that "...it was fine".

FAST FORWARD>>>We close on the property, I get a lease signed and move a young family into that unit. They get the gas turned on and the heat doesn't work (in the middle of one of our weekly snow storms). Find out that the boiler is toast and it'll cost $2400.00 to get another one.

I call the seller again and he claims that I misunderstood him when he said "...it was fine". He was speaking of when another tenant (before the LAST tenant) was in that unit. He then mentioned that he did pay to have it fixed but neither he nor the repairman bothered to test it afterwards. I asked him for the repairman's number but he said it was disconnected. When I asked for his name or the name of the company, he claimed that he forgot and wished me luck on getting the tenants heat fixed in a timely matter.

Do I have any recourse in this situation?

**A: what is in writing ie. seller property condition disclosure statment?
You should have refused to close until those appliances were inspected.

 

[DreRo]

The condition disclosure is for an amount greater than the price of replacing the boiler ($2400.00). Does that protect him and make lying about the condition of specific components before the sale legal?

 

[HomeGuru]

The condition disclosure is for an amount greater than the price of replacing the boiler ($2400.00). Does that protect him and make lying about the condition of specific components before the sale legal?

**A: your first sentence is confusing.

 

[DreRo]

I was stating that there is a clause in the sales agreement that said the if there were a series of repairs larger than a certain amount that we, the buyers, could walk away from the deal. I thought that was what you were referring to. I was stating that the amount was larger than the cost of replacing the boiler.

 

[HomeGuru]

I was stating that there is a clause in the sales agreement that said the if there were a series of repairs larger than a certain amount that we, the buyers, could walk away from the deal. I thought that was what you were referring to. I was stating that the amount was larger than the cost of replacing the boiler.

**A: Ok, the answer is NO. No contract clause would protect a Seller from fraud.

 

[Brownfieldman]

However, you still have a proof problem.

The reps in writing should control, and in many situations there is language in the written agreement that oral reps are meaningless unless reduced to writing and signed by the parties.

You would have to prove that the Seller made the oral representation, you relied upon that to your detriment, and it was reasonable under the circumstances for you to rely upon that rep. Your written agreement may shed some light upon the strength of your position.

good luck

 

[DreRo]

Thanks Brownfieldman and HomeGuru! Anybody else, I'd still love your input.