Should I sue the inspection company that inspected my house?

We were in the stages of buying a home and had an inspector come out and look at the house. He said it was fine there were minor problems with the home nothing too major tat needed to be done, and it would be safe to live in. My husband is an industrial electrician he isn’t too familiar with residential electrical but wanted to make sure everything was safe and up to code. Inspector reassured him it was fine. Few months into owning the home my home insurance company wanted to cancel my insurance due to faulty electrical work. I had to redo the whole panel putting me out of pocket 5K. We found huge visible holes in that go into the foundation up to 5ft. There are now major plumbing issues that have to be done now. We found pipes in the back yard that weren’t capped off. I was told my house was safe to live in and now I’m having major issues with the home.

Asked on June 6, 2016 under Real Estate Law, Texas

Answers:

S.L,. Member, California Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

You can sue the inspection company for negligence. Negligence is the failure to exercise due care, which is that degree of care that a reasonable inspection company would have exercised under the same or similar circumstances to prevent foreseeable harm. An employer is liable for the negligence of its employee, the inspector, which occurred in the course and scope of employment.
If the seller failed to disclose the plumbing , foundation or other problems, the seller is liable for fraud.


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