What is my recourse if I purchased a home and found major issues?

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What is my recourse if I purchased a home and found major issues?

I purchased a home a month ago and week after I found that the main sewage

pipe has a 7 foot crack and flooded the basement.there is a few signs that the

previous home owner knew about it and did not mention it during the sale. Now I’m stuck with thousands of dollars in repairs that are needed and cannot

afford. Is anything that I can do. Also I purchased on a FHA loan.

Asked on June 6, 2018 under Real Estate Law, Pennsylvania

Answers:

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

Answered 3 years ago | Contributor

You can sue the seller 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 bought the house had you known of the cracked sewage pipe and/or the basement flooding.
Your damages (monetary compensation you are seeking in a lawsuit for fraud against the seller) are 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 purchased 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 the price paid and actual value of the property acquired.

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

Answered 3 years ago | Contributor

You can sue the seller 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 bought the house had you known of the cracked sewage pipe and/or the basement flooding.
Your damages (monetary compensation you are seeking in a lawsuit for fraud against the seller) are 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 purchased 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 the price paid and actual value of the property acquired.


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