what’s my recourse

I closed on my home purchase 5/15/17. That next wkend I tore out the
carpeting because I wanted laminate flooring. To my surprise, some of the
flooring is rotten and there is old green and yellow tiling on the floors.
Also, pink ceramic tiling in the bathroom. I was told there may be asbestos
in the glue that holds this tiling down. I also discovered big cracks in the
walls in several rooms after removing some brown paneling from the walls.
Do I have any recourse if the tiling tests positive for asbestos? None of
this was disclosed to me at the time of purchase. I had an inspector come
in and inspect the house too.

Asked on May 30, 2017 under Real Estate Law, Oregon

Answers:

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

Answered 3 years ago | Contributor

You can sue the seller for fraud and the inspector for negligence.  You would file one lawsuit naming the seller and inspector as defendants.
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, you would not have bought the house had you known its true condition.
Your damages (monetary compensation you are seeking in a lawsuit for fraud) would be either the benefit of the bargain or your out of pocket loss.
Benefit of the bargain means 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 of damages for fraudulent misrepresentation permits recovery of the difference between actual price paid and actual value of the property acquired.
Negligence on the part of the inspector is the failure to exercise due care (that degree of care that a reasonable inspector would have exercised under the same or similar circumstances to prevent foreseeable harm).
Your damages for negligence would be costs, expenses, and other items caused by the negligence of the inspector.


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