Legal Question in Real Estate Law in New York

Full Disclosure??

My husband and I bought our house in Dec. 2002. On the ''full disclosure'' form, the previous owners checked ''don't know'' next to the box that questioned the house flooding. Well, we had a major storm and there was flooding in our home. Our neighbors said that the owners definitely knew about this problem and were even fighting the city about it. Do we have any recourse??


Asked on 7/21/03, 10:15 pm

3 Answers from Attorneys

Kenneth J. Ashman Ashman Law Offices, LLC

Re: Full Disclosure??

Yes, you may sue the seller for breach of contract and obtain damages for the cost of the clean up from the flooding. In order to prevail, you will need to establish that the house flooded while the sellers lived there. This could possibly be established through "discovery" in the court case.

Also: It sure sounds suspicious that the seller checked "don't know" as to whether his own house flooded -- something you should have probably challenged him on prior to closing on the sale.

-- Kenneth J. Ashman; www.AshmanLawOffices.com; [email protected]

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Answered on 7/21/03, 10:43 pm
Michael Markowitz Michael A. Markowitz, PC

Re: Full Disclosure??

Mr. Ashman is wrong. The law for the Property Disclosure Statement "provides no such specific right of action to the purchaser for a breach of the Disclosure form." Malach v. Chuang, 754 N.Y.S.2d 835 (2002).

However, if you are able to demonstrate actual knowledge of the condition (meaning that the Sellers actually saw and knew about a flooded basement) instead of constructive knowledge of the condition (Sellers never saw a flood, just water stains), you may be able to recover based on a fraudulent misrepresentation claim.

Mike.

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Answered on 7/22/03, 8:58 am
Walter LeVine Walter D. LeVine, Esq.

Re: Full Disclosure??

You may have a case for fraudulent misrepresentation, if you can establish the Seller had actual knowledge of a flooding condition. If the neighbors are correct that complaints were filed with the City, you could try to get copies of their complaints. Did your title search indicate the property was in a flood zone? If so, were any insurance claims filed during their period of ownership? You do not indicate how long the Seller owned the property. If they owned it for years, they should have known of this condition. This is a discovery matter as part of a lawsuit. I suggest using a knowledgable real estate/contract attorney to assist you. If your damages were not great, the cost of suit might be more than your recovery, unless you are looking to get out of the purchase.

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Answered on 7/22/03, 10:54 am


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