Legal Question in Real Estate Law in Indiana

Re: bought a home with bad water

Unless this is a new home or built within the past 10 years, there is no statutory remedy. However, if the realtor was aware of the problems and failed to disclose the same, the seller will probably also be considered as having had the same knowledge. You can sue on a theory of fraud (a common law remedy) for damages because the property you bought was not worth what you paid or you could sue for recission on the basis of either fraud or mutual mistake to get all of your money back. The realtor will probably have an errors and omissions policy that will provide an attorney to defend him and a fund for recovery. The owner will probably not have an insurance policy of any sort to protect him. Depending upon your location, the litigation can be expected to take more than a year to complete. Your damages may be either the cost of repair or the diminuation of value. It is very important to get an appraisal of the property as it is, as well as to get together estimates for the cost of repairs to put the property in the position you believed it to be.