Can we get out of the sale of this home?

What is the name of your state? Texas

We just bought a house almost three weeks ago, and just found evidence of flooding/mold two weeks after closing, which was not disclosed. The owner has since admitted to the flooding. We where told by the Real-estate company who sold us the home that we signed paperwork stating we would attempt to solve any disputes though mediation before taking our case to court. He said that he is willing to do just about anything to keep this away from attorneys.
Mold remediation is not an option for us, as this would take several months of repairs that we do not have time for, and we are concerned about resale of this house with a previous flood history. We want out of the sale of this house, and want to know what our options are for getting our money back and compensation for the inconvenience one being our baby is due in just one more month. The broker of the real estate office is requesting a list of our demands “to make this situation right”, which we feel we need good advice on before putting anything in writing. We would like to resolve this as quickly as possible so that we do not put our family’s health at risk any further. We also know it will take about a month to close on another house, which will put us very close to when we will be having our second child.
Do we have the right to ask out of the sale of the home? Is this possible? Should we consult with an attorney even if we signed the paperwork about mediation? The broker stated that his insurance company would cover any repairs needing to be done in cases like this, but will the insurance company buy our house back and compensate us for time and expenses put into this house?

[HomeGuru]

[quote]Originally posted by Potsmod
[b]What is the name of your state? Texas

We just bought a house almost three weeks ago, and just found evidence of flooding/mold two weeks after closing, which was not disclosed. The owner has since admitted to the flooding. We where told by the Real-estate company who sold us the home that we signed paperwork stating we would attempt to solve any disputes though mediation before taking our case to court. He said that he is willing to do just about anything to keep this away from attorneys.
Mold remediation is not an option for us, as this would take several months of repairs that we do not have time for, and we are concerned about resale of this house with a previous flood history. We want out of the sale of this house, and want to know what our options are for getting our money back and compensation for the inconvenience one being our baby is due in just one more month. The broker of the real estate office is requesting a list of our demands “to make this situation right”, which we feel we need good advice on before putting anything in writing. We would like to resolve this as quickly as possible so that we do not put our family’s health at risk any further. We also know it will take about a month to close on another house, which will put us very close to when we will be having our second child.
Do we have the right to ask out of the sale of the home?

**A: yes.
********
Is this possible?

**A: yes.
*******

Should we consult with an attorney even if we signed the paperwork about mediation?

**A: yes and do it before talking to the Seller and/or broker again
***********
The broker stated that his insurance company would cover any repairs needing to be done in cases like this, but will the insurance company buy our house back and compensate us for time and expenses put into this house?

**A: discuss these issues with your attorney.

I'm in NY, and have a "situation" similar to yours, but we HAVEN'T closed yet.

After we entered contract, termite damaged wood was discovered from a specialized termite inspector we had go in there (unfortunately) AFTER contract (note our original general inspector did not find any damage).

We were told NOT to close, because if we do KNOWING the damage (both myself and the seller know of the extent of the damage), it is as if we "accepted" the damages as of the closing date. (Some legal term of "merging" or something).

Your seller KNEW and failed to do anything about it, or disclose it to you, the buyer. According to the termite inspector, our sellers ALSO knew (he noted drill holes where the area was treated, but the damaged wood was never repaired). However, their attorney covered THEIR butt by putting a clause in the contract which indicated we had 15 days to hire a termite inspector and have the home inspected or RELINQUISH OUR RIGHTS as to any damamge discovered afterwards.

How do you like THAT one???? So, double-check your contract, too, and buyers -- BEWARE of that clause. This is our first home sale, and we are learning FAST.

ANyone wishing to see my story see the post "termite damamges AFTER contract BUT before closing". I'd appreciate any help whatsoever.

Good luck with the mold.