Forgot to disclose seepage in unattached garage

[JC6941]

What is the name of your state? Minnesota
We sold our home and disclosed honestly what we knew what was wrong with the home. Everything was fine
with the buyer and we closed without incident. There was a home inspection also. No real issues.

The detached garage at the alley is about one foot below grade of the yard side. The yard grade is built up higher than the alley grade. When it was built years ago, this yard side wall was built up with cinder block (about 3 course) . The cinder block is buit up on a solid concrete pad.

When heavy rains occur "some seepage" comes in from the yard side wall. An 1/8 of an inch water coming across floor by 1 or 2 feet across.

On the disclosure we honestly forgot about this condition. It was not related to the inhabitable part of the house and
it just wasn't even addresses on the disclosure.

Now the buyer is upset. The realtors say "they may take to arbitration...."

What can happen? We are living in temporary housing until our new home is being built so we are facing major
financial reponsibilty and commitments.

[seniorjudge]

Originally Posted by JC6941

What is the name of your state? Minnesota

Disclose, disclose, dislcose.

[JC6941]

That's a poor response to helping my dilemma

[pojo2]

Originally Posted by JC6941

That's a poor response to helping my dilemma

Not really, just that no one can really tell you on this one how the arbitrator might rule and you did not disclose it.

Now you are building a new house and of course no one would do that without legal counsel to go over contracts and make sure their rights are protected so ask him or her how the case against you looks.

They could just be blowing smoke to see if you will crumble in fear of a lawsuit!

[vada444]

The agent might could be liable too. If he or she knew about this or could have discovered it with reasonable checking and questioning.

[John Se]

I think you will be OK in arbitration, seems like a small matter, do they want some money to have the problem fixed, or do they just want money?. Make them an offer, they will take your money and probably never do anything about it. Otherwise they have to fight (which means pay to fight) with the potential to gain nothing.
Was the problem obvious?

[PghREA]

Originally Posted by vada444

The agent might could be liable too. If he or she knew about this or could have discovered it with reasonable checking and questioning.

And how would the agent know if the garage floods during a rainstorm unless, of course, the agent was in the garage during or shortly after a heavy rainstorm or if the seller told him.

Many sellers forget to mention pertinent things on the property disclosure. I would go with Pojo's advice.