If my cousin bought a house and later discovered a massive sewage issue that the previous owner had but did not disclose, do they have any recourse?

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If my cousin bought a house and later discovered a massive sewage issue that the previous owner had but did not disclose, do they have any recourse?

There is a massive sewage issue that quite apparently was a problem the previous owner did not disclose.

Asked on November 20, 2018 under Real Estate Law, Michigan

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 2 years ago | Contributor

Yes, IF your cousin can show--as you suggest he can--that the previous owner was aware or logically must have been aware (i.e. any reasonable owner in his/her position would have known) of the problem but failed to disclose it, then your cousin can hold the owner liable based on fraud (a material, or important, misrepresentation); that could provide a basis to recover the cost to correct the situation. The key will be showing that the prior owner must have been aware, since fraud is basically liability for lying--but it's not lying if you did not know of it.


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