Legal Question in Real Estate Law in Indiana

disclosure of fixed problem?

Our home had a foundation problem that has since been fixed - the part that was sinking was pumped back up and is supported by piers. The foundation repair itself has a lifetime guaranty. Since the problem has been fixed, do I have to disclose anything about the previous problem when I go to sell the house? Even though I have a lifetime guaranty on the repairs, I'm afraid that even listing it in the disclosure would make prospective buyers back away. On the other hand, I don't want to open myself up to lawsuits for failing to disclose. As of now, to my knowledge there is no problem with the foundation. Anyone?


Asked on 1/09/06, 1:47 pm

1 Answer from Attorneys

C. David DuMond Law Offices of David DuMond

Re: disclosure of fixed problem?

Your statement, " . . . I'm afraid that even listing it in the disclosure would make prospective buyers back away," leads the way to what you already know you must do: disclose the foundation repairs. Otherwise, regardless of the technicalities of the real estate disclosure laws -- which also require this disclosure -- you would be omitting to state a fact which a reasonable buyer, like yourself, would want to know. You would be liable under common law fraud. (Sometimes the Golden Rule is enforced at law.) So do the right thing, which is also the legally required thing, and make the full disclosure. You can ameliorate the negative effect by stating, if true, how to the best of your knowledge the problem has been solved. There are self-interested reasons for making full disclosure: it will help induce trust from your buyers; it will innoculate you against unknown future problems concerning the foundation being attributed to you. (If there were to be future problems with the foundation, then the buyer will surely discover that you had repairs done, and having failed to make the disclosure, you would never convince anyone that you didn't know about the new problems.) So, do what must be done with a cheerful heart. And good luck.

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Answered on 1/09/06, 3:00 pm


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