Legal Question in Real Estate Law in Michigan
Do I need a real estate attorney? I just recently closed on a house that I paid in cash for 45 thousand, my life savings.
The house had been recently remodeled and was listed as move in ready. I just had a friend do a simple inspection and all seemed well. They even threw in a home warranty. Upon going in to paint the house my colors, I found that when using lots of water to clean paintbrushes and the like, water backed up in the basement drain. I just blew it off as the house hadn't been occupied in about 6 months. But it kept happening, I called in a plumber to do a snaking under the home warranty ($100 deductible) and he found a collapsed sewer pipe so the backyard has to be dug up and around 4000 dollars. Also the neighbors told me that the basement walls were getting ready to fall in, basement is finished in drywall so couldn't tell. This house was bought on a short sale to a builder.
The builder got it for 23 thousand and then flipped it to me for $45000. I could have gotten a house for 20 thousand with these problems. The disclosure statement said EXEMPT because the builder never occupied it. Do I have any recourse to the seller? How should I start, with a demand letter? I'm going to get someone out for the foundation inspection also. This has just devastated me cause I thought I was getting a move in ready house and spent my life savings. The basement floor near the drain was also freshly painted and no signs of water, basement was just recently finished. Please help!
1 Answer from Attorneys
It looks like you might have a good case for fraud; the neighbors might be supportive witnesses. The builder probably isn't exempt from the Seller Disclosure Act because from your description, the house was not new construction by the builder. Non-occupancy is not an exemption without more.
A demand letter would be a good start, but you should await the foundation inspection to include everything that might be in your claim. You can contact me ([email protected]) if you'd like to know more about what can be done.
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