Do we have a case against sellers who flipped our home?

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Do we have a case against sellers who flipped our home?

Sellers flipped a property and had it for 4 to 5 months. They had mold remediation done and said in disclosure that there was no water in basement. They made a finished basement and did not do correct water proofing. Then 3 weeks after purchase and settlement of the home, we the buyers already have water in basement. Entire areas of carpet are soaked which appear to come from the bottom up. Quotes from professionals state that basement waterproofing is needed and quotes range in price from $5,000 to $17,000. We believe this could not have been first time basement had gotten water. Do we have a case to fight them for damages? They are stating they had no knowledge of water and will not pay any damages.

Asked on February 26, 2018 under Real Estate Law, Pennsylvania

Answers:

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

Answered 3 years ago | Contributor

You can sue the sellers 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, you would not  have purchased the house had you known of the basement flooding.
Your damages (monetary compensation you are seeking in your 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 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 price paid and actual value of the property acquired.


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