Legal Question in Real Estate Law in Pennsylvania

In Jan 2008 we sold out house in PA. In the sellers disclosure we mentioned that the basement wasfully finished and use and occupancy permits issues. However the final permit was never issued because the sprinkler system was not correctly installed by the contractor. The tried numerous time to get in touch with the contractor to fix this but were not able to do so prior to closing (and is now out of business). the buyers did have a home inspection done, but this was never brought up during the sale. The buyers are now (almost 4 years later) asking that we shell out $1400 for the sprinklers to be installed and are suing in small claims court for this amount.

Per the PA Real Estate Disclosure Law, the statute for the disclosure is 2 years. Can we defend ourselves in court in this case or should be settle for the full amount outside of court. The buyers are not willing to negotiate with us.

Thanks!


Asked on 11/01/11, 6:23 am

1 Answer from Attorneys
Miriam Jacobson Retired from practice of law

Is it really worth $1,400.00 to go through litigation with the buyers? The cost of defending against a lawsuit, if the buyers sue, will be much more than what they're asking for. While you should have provided the final permit, and certificate of use and occupancy if one was required for this work, and the buyers should have insisted on receiving it, that will be a fact to consider in the lawsuit. A home inspection would not reveal permit and use issues, home inspections are usually limited to the actual condition of those parts of the property that the inspector has access to and can examine.

You statement in the seller's disclosure that "the basement wasfully finished and use and occupancy permits issues [did you mean issued?]" would be a misrepresentation, because you were aware that the final permit was not issued.

So consider, if the buyers sue, you will have to engage a lawyer to help you with defending the case. Unless you yourself are a lawyer, procedural and legal issues are beyond most non-lawyers, and even some lawyers who do not regularly deal with them.

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Answered on 11/01/11, 9:35 am


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