What to do regarding a fraudulent seller disclosure?

UPDATED: Jan 14, 2012

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What to do regarding a fraudulent seller disclosure?

My Buy/Sell agreement stipulated a full roof replacement and specified that a permit would be applied for. The seller provided a signed work order as part of our Buy/Sell agreement. After providing this signed work order as proof of what would be done the seller renegotiated with the contractor behind my back to omit certain steps including the permit. The faulty work has caused serious damage to the property. I would argue the seller knowingly gave a false disclosure as to the state of the roof at the time of sale.

Asked on January 14, 2012 under Real Estate Law, Michigan


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

The seller had likely made a fraudulent misrepresentation, which would give rise to a claim for damages, or compensation. The seller may also have breached the agreement by not obtaining the permit or doing a full roof replacement; and/or has breached the implied covenant of good faith and dealing, which requires that parties to a contract act in good faith vis-a-vis each other. All of these breaches or misrepresenations could provide grounds to recover compensation. You should speak with an attorney about filing a lawsuit.

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