Legal Question in Real Estate Law in South Dakota

Home Problem

I was wondering if I would have any recourse in the following situation: My husband and I purchased our house in March 2007. The house had been previously purchased by a construction company who had remodeled the upstairs and finished the basement before we bought it. In their disclosure they stated that they were not aware of any water problems or any cracks in the foundation, all they disclosed was they had put steel beams in the basement to support the walls. To our surprise this summer we had a good deal water damage in the newly finished basement and ended up having to rip out the carpet and drywall. When ripping out the drywall we discovered there is an inch wide crack that runs down the corner wall that someone appears to have tried to cover up with caulk and this is where the water is coming from. Also, the basement walls have begun to shift from this and are causing cracking in the walls upstairs. We have recently been in contact with a gentleman who worked with the company who remodeled our house (and has now quit), who says that he was told on our house and many others to just cover up the problems to save money. Is there anything that we can do legally to get this problem fixed?

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