Seller's non-disclosure

[BryanL]

What is the name of your state? West Va
I put a contract on a new home sixty days ago and was within 5 days of closing when I found out through a third party that the house was built on a “high-water table” and a building permit would not be issued to finish the basement on this home. The seller failed to disclose this on the Seller’s Disclosure, and in fact told us that the basement could be finished. The builder has informed me that the Seller was indeed informed when he purchased the home originally. I have legally backed out of the contract but my question is do I have a means to get back the money paid for both the home inspection and the appraisal (@ $500)? Both of these came back without problems, but the fact is, had we known in advance of the soil condition we would have never put a contract on this house to begin with. What are my options?

 

[HomeGuru]

What is the name of your state? West Va
I put a contract on a new home sixty days ago and was within 5 days of closing when I found out through a third party that the house was built on a “high-water table” and a building permit would not be issued to finish the basement on this home. The seller failed to disclose this on the Seller’s Disclosure, and in fact told us that the basement could be finished. The builder has informed me that the Seller was indeed informed when he purchased the home originally. I have legally backed out of the contract but my question is do I have a means to get back the money paid for both the home inspection and the appraisal (@ $500)? Both of these came back without problems, but the fact is, had we known in advance of the soil condition we would have never put a contract on this house to begin with. What are my options?

**A: no, since you could have found out about the building permit issue prior to ordering the appraisal and home inspection.

 

[JETX]

I agree with HomeGuru.... and add that I don't think you had a valid reason to cancel the contract. This is NOT a defect, nor is the seller obligated to notice you of something you should have known on your own.
If you get a refund of your earnest money, you are lucky and walk away with that.

 

[BryanL]

more details

I’m slightly confused by the replies to my inquiry. The high water table is a negative soil condition that could adversely effect the basement, i.e. “wet basement.” This condition negatively affects insurance premiums as well as the resale value of the home. There was no foreseeable way to be warned of the situation since there were no plans to finish the basement immediately. Furthermore, there is a space on the seller’s disclosure that specifically asks the seller if there is an existing “soil problem” on the property, which the high water table clearly falls under. I can only assume that you are not completely aware of the possibility of extreme costs associated due to high water tables and water seeping into foundation walls, etc. The builder sold the property to someone directly after completion. This person bought the property to sell, and not for a residence. The builder informed us that he made the original buyer completely aware of the situation beforehand. To further complicate issues, the seller had said verbally that the basement could be finished. The selling agent was not aware of the situation until I found out, and he was appalled that the seller could withhold such information. I hope this helps to clarify the situation.

 

[HomeGuru]

I’m slightly confused by the replies to my inquiry. The high water table is a negative soil condition that could adversely effect the basement, i.e. “wet basement.” This condition negatively affects insurance premiums as well as the resale value of the home. There was no foreseeable way to be warned of the situation since there were no plans to finish the basement immediately. Furthermore, there is a space on the seller’s disclosure that specifically asks the seller if there is an existing “soil problem” on the property, which the high water table clearly falls under. I can only assume that you are not completely aware of the possibility of extreme costs associated due to high water tables and water seeping into foundation walls, etc. The builder sold the property to someone directly after completion. This person bought the property to sell, and not for a residence. The builder informed us that he made the original buyer completely aware of the situation beforehand. To further complicate issues, the seller had said verbally that the basement could be finished. The selling agent was not aware of the situation until I found out, and he was appalled that the seller could withhold such information. I hope this helps to clarify the situation.

**A: no, we are not confused. Search the definition of due diligence. When you reviewed the disclosure statement, you had the opportunity to hire experts to investigate the "dampness" issue. Furthermore, you could also have investigated the building permits etc. and even talked to the builder prior to spending money and ordering the appraisal and home inspection.
While we agree that the Seller did not fully disclose some facts, you remain liable nevertheless for buyer costs such as the appraisal and home inspection.

 

[BradleyS]

If you are relentless, and can't let it go.......take your argument to small claims and let a judge decide if you should be reimbursed for the expenses.