What can I do if I found out a house for which I made an offer, had tons of unpermitted work but after the 10 day inspection period had ended?

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What can I do if I found out a house for which I made an offer, had tons of unpermitted work but after the 10 day inspection period had ended?

I do not want to buy but have been told I will be sued if I don’t.

Asked on July 3, 2015 under Real Estate Law, Wisconsin

Answers:

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

Answered 5 years ago | Contributor

Fraud is the intentional misrepresentation 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 made an offer on the house had you known about the illegal work that had been done without a permit.

Fraud also applies in cases of nondisclosure.

The seller has no case against you because of the seller's fraud.  The seller cannot force you to buy the house.  If the seller files a lawsuit against you, assert the defense of fraud.

You can also file a cross-complaint (countersuit) against the seller for fraud.  Tell the seller that you cannot be forced to buy the house because fraud invalidates the contract and that you will sue the seller for fraud.


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