Legal Question in Real Estate Law in Massachusetts
suit for inadequate septic system
We sold a home in 2001, and we are now being sued by the new owners for misrepresenting the home's septic system. The 6 bedroom home's septic system passed Title V as part of the sale; now the town states that the septic is only adequate for a 4 bedroom home. We had a local reputable builder design and build this home for us in 1995; the septic system plans were signed off by the town, and we received an occupancy certificate after the home passed its inspections. We were never aware during our occupancy that there was a problem. How do we proceed? Do we need to retain counsel?
3 Answers from Attorneys
Re: suit for inadequate septic system
As a practical matter, any time you have "been sued" you need competent Counsel! If you have in fact been served by the former owner with a Complaint & Summons, retain an attorney immediately. . . by rule you have 20 days to serve your Answer to the suit.
It appears from the facts recited, that you have a defensible position to this Complaint.
"Caveat Emptor", or, "buyer beware", applies especially to real estate transactions. A buyer generally buys any and all of a property's problems along with the property. This is why the pre-closing inspections are so crucial.
There is a very narrow area of exception to this general rule--where a seller has knowingly misrepresented a known condition OR (perhaps)knowingly failed to disclose a known and undiscoverable material defect.
In your case, it seems you did not know of a material defect. In fact, you reasonably presumed no defects based upon your knowledge of appropriate Title V certification and town permits. Thus, it seems likely you cannot bear liability.
Re: suit for inadequate septic system
As a practical matter, any time you are sued you need to get competent legal advice and representation. If you have in fact been served by the former owner with a Summons & Complaint you need to retain an attorney immediately, by rule you have 20 days to serve your Answer to the suit.
It appears from the facts recited, that you have a defensible position to this Complaint.
"Caveat Emptor", or, "buyer beware", applies especially to real estate transactions. A buyer generally buys any and all of a property's problems along with the property. This is why the pre-closing inspections are so crucial. There is an of exception to this general rule--where a seller has knowingly misrepresented a known condition OR (perhaps) knowingly failed to disclose a known and undiscoverable material defect. In your case, it seems you did not know of a material defect. In fact, you reasonably presumed no defects based upon your knowledge of appropriate Title V certification and town permits. Thus, it seems likely you cannot bear liability.
You should also get a copy of the Purchase and Sale Agreement you signed and provide that to the attorney as well as a copy of the Title V Certification from both 1995 and the sale.
Likewise, if you purchased owner�s title insurance in 1995 when you closed on the house, you should give that information to your attorney as well, as they may have liability under the policy depending upon the specific nature of the allegation.
But do not hesitate, get an attorney now if you have been sued.
Re: suit for inadequate septic system
Yes, you should retain competent counsel anytime you are served with a summons and complaint to file an appropriate answer within the 20 days allowed or to seek an extension of time to do so if needed. It sounds like you have a defensible position. Good Luck.