Legal Question in Real Estate Law in Pennsylvania
Possible fraud claim for Non -Disclosure by seller at time of purchase
Property was purchased in February 2004 and is zoned as both a commmercial and residential property. Mandatory inspection prior to sale did not reveal leak in basement, although buyer believes that it was evident at time of sale. This is not the buyers' primary residence and although he visits frequently he did not see the leak until after a period of heavy rains. Leak will require buyer to incur major repair costs. Does the buyer forfeit their right of claim at closing or is there some way to recoup the reapir costs from the seller? Is there any other recourse for the buyer ?
3 Answers from Attorneys
Re: Possible fraud claim for Non -Disclosure by seller at time of purchase
Traditionally, claims merge with the closing, so a claim not raised before the closing is over is barred. However, if the defect was known to the Seller and not disclosed, and only discoverable after the closing, there may be a fraud claim. This might also apply to the Seller's broker if they were aware of the condition. I also concur with Phroska that you should look at the inspection guaranty for a possible claim. If this was a pre-existing condition, there might have been evidence of it, such as build-up of salts or other evidence on the walls, stains on ceilings or walls, etc. If there were and the inspector did not comment on it, you may have a claim there also.
Re: Possible fraud claim for Non -Disclosure by seller at time of purchase
You have 2 possible claims the first against the owner and agent if they knew of the leakage and failed to disclose of it, this also applies to if they should have known as well that such a condition existed. You may also have a claim against the home inspection company, if a home inspection has previously occurred. In any event you should consult with an Attorney to protect your rights, remember their is only a 1 year statute of limitations as to Fraud on such cases!
My firm is available at 412.731.0865 or www.AlleghenyAttorneys.com
Re: Possible fraud claim for Non -Disclosure by seller at time of purchase
If the Seller knew and "hid" the defect/s from inspection; If Seller had an obligation to diclose the defect and failed to do so; If the inspection was in some way "guaranteed" or "warranted" to be accurate and dependable, for buyer's purposes, etc., Or, if the Contract or Closing Document's provide for redress, in this case, there might be some recourse or remedy. If not, one or all of the above, Buyer's, claim for imbursement or repair, is NOT likely to be granted.
Good luck,
Phroska L. McAlister,ESQ
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
