Legal Question in Real Estate Law in New Jersey
Hidden defect in home purchase
I purchased a home in Jan. 1995. Had home inspection done. Contract of Sale requires seller to correct all defects at their expense. In April 1998, it was discovered that a bathroom was not connected to municipal sewer system, but rather to an active septic system, which violates Town ordinances in place since 1975. This condition was not discoverable by inspection and observation. Costs to correct are $5000.00. Sellers definitely new of the condition and did not tell anyone, including the listing real estate agent. Listing clearly stated "municipal sewers". I filed suit in NJ Special Civil part (like Small Claims). Their attorney is threatening me with "Frivolous Litigation" suit, claiming there is no merit due to Statue of Limitations and terms of contract, which relieve sellers of their obligation upon closing. "If you didn't catch it at inspection, you waived it by closing".
1 Answer from Attorneys
Re: Hidden defect in home purchase
Generally, most seller warranties expire at closing on the theory that they have no control over what happens once you take possession. However, a major exception is that sellers have a duty to disclose 'latent' defects which are those that could not have been discovered through the exercise of reasonable diligence. Certainly you've satisfied that by having a professional home inspection and, as you say, this probably couldn't have been discovered very easily at the time anyway. That gets you around the contract provisions. The statute of limitations on theses actions is at least 6 years from the date of sale so your in good shape there. In my opinion the seller's attorney is guilty of sharp practice at best in threatening a pro se plaintiff when he/she knows or should know what you're being told is simply wrong notwithstanding that he/she is trying to zealously represent a client. Don't be intimidated. It sounds like you have a good case. Just be prepared to prove it with expert opinion on the defect as well as the cost to repair. Good luck.
Dale Lundquist
(Solo)
488 Glassboro Road P.O. Box 104
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