Can I sell a house that I am taking legal action against the previous owner?
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Can I sell a house that I am taking legal action against the previous owner?
I bought a house in Michigan. The seller did not disclose that their was water damage in the basement and lied about it in the disclosures. I fixed the water damage and am taking action against the previous owner. But I am also selling the house and just got an offer on it. Will that affect my sale? Should I not be selling the house right now?
Asked on October 24, 2018 under Real Estate Law, California
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 5 years ago | Contributor
Legally, there is no bar or impediment to selling a house while suing the prior owner: because you are the one suing (not being sued), the lawsuit does not have any potential to result in a lien against the home or otherwise affect its title. Whether news of a lawsuit vs. a prior owner for undisclosed water damage, should word get around somehow, affect you ability to sell or what people might offer, we cannot say--that's something to discuss with your realtor. But can tell you that there is no legal issue.
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