II have a mortgage on new house that does not have a certificateof occupancy. Who is liable other than the builder/seller?

New home, never occupied. Country Wide closing instructions did not call for the CO. Seller was the “builder” that was grossly misrepresented by his realtor. Seller/Builder disclosed NO defects. W/in 30 days of moving in we discovered the house is racking and had MAJOR structural issues and major building code violations. We sued the builder and have a worthless agreed judgement. How can I get out from underneath this mortgage, and who else is responsible? What other recourse for recovery do I have?

Asked on July 6, 2009 under Real Estate Law, Kentucky


J.M.A., Member in Good Standing of the Connecticut Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

Your claim against the builder is the strongest despite the fact that he has no money.  Did you find out if the builder had insurance?  Usually, builders have insurance when they do projects such as this and the banks that give them the loan to build the house often require the builder to have insurance for similar reasons that you are now in.  I suggest looking into the builder's insurance.  I would also look into suing the real estate agent for the builder, especially if the agent knew about the defects - i.e. the Realtor may have had a duty to speak up and/or made false statements that you can use as the basis of a fraud claim.  I suggest hiring a lawyer immediately to try to recoup money to fix your home.  You also need to get a c/o.  Your lawyer can assist you with that.

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