Legal Question in Real Estate Law in Texas

Non-disclosure of construction permits

I am at this moment in negotiations with a seller to buy a townhouse. After some offering, counter-offering, I decided to investigate more into a foundation job the seller had done by an individual before going any higher in price. I was given a seller disclosure notice that asks:

''Are you, (seller) aware of any structural modifications, alterations or repairs made without necessary permits or not in complience with building codes in affect at that time'' The seller checked ''NO''. Seller did disclose verbally thru his agent that work was done by an individual, not a company. But that is all that was disclosed. I called the city records/permits department and discovered that no permits were obtained for this address/property. This has caused a whole host of issues from no permit inspection to Home owners associatation issues to insurance liabilities. Is this a case where seller should have known of these issues and revealed it in disclosure?


Asked on 11/14/03, 5:33 pm

1 Answer from Attorneys
Earl Bentley Earl Bentley & Associates

Re: Non-disclosure of construction permits

I can't tell what you want to do in regard to your very thorough investigation. Certainly, you probably know already that foundation problems are a serious concerns in some areas of North Texas. Your discovery of the true facts doesn't make the Seller out as a liar; likewise, it is not clear from what you posted whether or not you are still within the walk away option period. Your broker should offer you some guidance in regard to your rights under the contract. But, neither the broker nor a lawyer can make the risk assessment decision. That is yours. Hope this is of some help. Earl Bentley

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Answered on 11/14/03, 6:43 pm


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