Legal Question in Real Estate Law in Indiana

Home can't be built to meet HOA restrictions

We purchesed a lot in an addition that has restrictive conditions for home size and value. At purchase we were told by the developer that it had been approved for a septic to support the size of house we wanted to build. When soil tested to get septic permit, land will not support a septic for the size of home required by the association. If permit had been issued previously for a septic we would have been able to use that permit. Local board of health has no record of septic ever being approved for that lot. We now own a lot that we cannot build on and cannot sell because no one else could build and meet the requirements. What legal actions can we take now to recoup the money (cost of lot, interest, property taxes, and association dues) that we have invested in this property?


Asked on 1/04/05, 11:10 pm

1 Answer from Attorneys

Mary Ann Wunder Wunder & Wunder

Re: Home can't be built to meet HOA restrictions

Your remedy is to sue the seller for recission and/or fraud. Either the seller knew or should have known that the septic could not be placed there (in which case there is a fraud) or there was a mutual mistake (it was impossible to know in advance). Recission damages include all of your out of pockets.

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Answered on 1/05/05, 9:23 am


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