Legal Question in Real Estate Law in Indiana

We purchased our home in 2001. In 2002 the unfinished basement had water damage and a leak in the cement. Out builder repaired this leak. We finished the basement with drywall, carpeting, trim and such in Demember of 2002. Sometime around 2005 the crack leaked again. We repaired the crack this time with cement sealer and had no further problems. We sold our house in July 2011. Buyers advised that last fall the basement was leaking. They pulled out the carpet and drywall and indicated that there was "substantial" mold and other water damage. They are requesting $6000 for those repairs siting we did not disclose this information to them at closing. We did not disclose this as it was not an issue for us and we were unaware of any mold or water damage as we did not tear up drywall or carpeting. Our documents signed at closing merely asks if the basement is wet - which we answered no to. Are we liable for these repairs?

Asked on 4/16/12, 1:20 pm

2 Answers from Attorneys

Kenneth Wilk Rubino Ruman Crosmer & Polen

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You may have a problem. Non-disclosure of the existing problem, even though you didn't feel it was an issue, could be grounds for the buyer's damages. Since there could be other penalties and costs involved, it might be a good idea to negotiate a reasonable end to this with the new buyers.

Answered on 4/17/12, 6:50 pm

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