What can we do about a new home purchase and defects that were not disclosed/discovered?
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What can we do about a new home purchase and defects that were not disclosed/discovered?
We bought a house about 9 months ago. We were told that we couldn’t get a home warranty. We complained about issues of concern several times and were told they were corrected but they were not. We are paying daily for issues that should have been caught and repaired before the sale. We feel the inspector and realtor and previous owners were deceptive. Can you help?
Asked on July 11, 2017 under Real Estate Law, Florida
Answers:
S.L,. Member, California Bar / FreeAdvice Contributing Attorney
Answered 6 years ago | Contributor
You can sue the seller/previous owner for fraud and the inspector and realtor for negligence.
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 its true condition.
Your damages (monetary compensation you are seeking in a lawsuit for fraud) against the seller/previous owner 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 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.
Negligence on the part of the inspector is the failure to exercise due care (that degree of care that a reasonable home inspector would have exercised under the same or similar circumstances to prevent foreseeable harm).
Negligence on the part of the realtor is the failure to exercise due care (that degree of care that a reasonable realtor would have exercised under the same or similar circumstances to prevent foreseeable harm).
You would file one lawsuit naming the seller/previous owner, inspector and realtor as defendants.
Fraud and negligence are separate causes of action (claims) in your lawsuit.
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