If the seller did not disclose the faulty plumbing pipes installed, do I have any recourse?
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If the seller did not disclose the faulty plumbing pipes installed, do I have any recourse?
I bought this house 2 months ago. Sewage is backing up in both bathtubs and the toilets won’t flush. I’ve had 3 plumbers out here and all say there are several 90 degree elbow pipes throughout the plumbing under the house. The only fix is to replace them all which is very expensive. Is there anything I can do? The seller did not disclose any of this and I would not have bought the house had I known.
Asked on March 29, 2017 under Real Estate Law, Texas
Answers:
S.L,. Member, California Bar / FreeAdvice Contributing Attorney
Answered 7 years ago | Contributor
You can sue the seller for fraud.
Fraud is the intentional misrepresentation or nondisclosure of a material fact made with knowledge of its falsity and with the intent to induce your reliance upon which you justifiably relied to your detriment.
In other words, had you known of the faulty plumbing, you would not have bought the house.
Your damages (monetary compensation you are seeking in your lawsuit) for fraud against the seller would be either the benefit of the bargain or your out of pocket loss.
Benefit of the bargain means that a defrauded purchaser may recover the difference between the real and represented value of the property purchased regardless of the fact that the actual loss suffered might have been less.
Out of pocket determination for damages for fraudulent misrepresentation permits recovery of the difference between the price paid and the actual value of the property acquired.
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