security deposit issues

virginia-closed on condo aug. 29, 2001. post-settlement occupancy agreement was signed with $1000 security deposit. tenants lived in house until sept 30, 2001. seller called mid-september to inform me (buyer) of a leak that was causing damage to an adjacent condo. tenant (not the seller) would not allow plumber in during his occupancy to fix problem. buyer fixed problem upon occupancy (october 1, 2001). owner of damaged condo told buyer that seller had known of the leak since june. seller signed disclaimer statement saying nothing wrong with condo. seller claims to not have known leak existed. 1)is there a breach of contract due to seller not telling buyer of leak? 2)are we entitled to get reimbursed for what it cost to fix the leak from the deposit? thanks!

[HomeGuru]

1. no, there is no breach but non disclosure of a material fact.
2. No. Read your State L/T law.

thanks for the reply homeguru! so are we owed nothing? seller is not responsible for anything even though he withheld that information from buyer?

[HomeGuru]

Originally posted by elisirius
thanks for the reply homeguru! so are we owed nothing? seller is not responsible for anything even though he withheld that information from buyer?

My response: I did not say that you have not been damaged.
The Seller is guilty of not disclosing properly.