Is the seller responsible if the disclosure states foundation was repaired but basement floods during the first big rain?

We purchased the house about 10 months ago. Since then we have had multiple issues happen. The latest is a flooded basement where there was supposed to have been foundation repair and a transferrable warranty according to the seller’s disclosure document, which we have not seen. Now the seller realtor states that the work was done by the previous owner before the realtor and her financial backers bought it to flip. She has worked with us on other issues since the sell. I have asked for the warranty but she ignores the question. It was also not disclosed that there is a large city drain in our backyard that was hidden by a large bush. If there is recourse for us is there a time limit after purchase?

Asked on April 7, 2017 under Real Estate Law, Missouri


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

If the transferrable warranty was not provided as required by the contract of sale, you could sue for breach of contract for the value of what the warranty would have given you. If the seller knew--or logically  *must* have known, given the facts/circumstances--of significant conditions contributing to flooding but did not disclose them, then he or she may have committed fraud, which could provide a basis for monetary compensation (like cost to correct). In your state, you can bring a breach of contract case for up to 5 years, a fraud case for up to 10 years, so you are still within time to take action, if you want.

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