Surprise... You have bought yourself a Money Pit!

[sgtdirtybum]

What is the name of your state? Texas

I just purchased my first house! It is over 20 years old and in a good part of town. I paid for an inspection to be done and appraisal to be done. All passed w/ flying colors! After review of the Seller's Disclosure notice (after signed and executed contract). The seller's disclosure notice said nothing of any problems or issues with the house.

Needless to say, the day of proposed closing (we ended up closing 8 days later because of Thanksgiving), the seller finally asks for me to sign a seller's disclosure notice claiming that I had received the past inspection report. I had not seen it to this point and had already had my inspector inpspect the home twice! I finally received it, but since my inspector had already seen the home twice....and both inspection forms had the same disclaimer verbage... I didn't think anything of it.

Well, the first weekend I was in the home (3 weeks since offer to close) and I pull back the carpet to find a 6 ft long 1/4'' wide differential crack in the slab about 1/2'' off level! I was furious! Come to find out, upon a closer review of the old inspection report, the Sellers had painted over cracks, taken off doors and mortarred over fireplace cracks that would have shown clear foundation issues! Furthermore, we find 2 fake vent covers hiding holes in both bathroom walls where extensive plumming work was done (black tar and new piping everywhere inside the wall... which by the way... runs directly over the crack in the slab)

I have spoken to one attorney that claims that by giving me the old inspection report, the Seller's have covered any liability they had to disclose foundation issues. And I am appartenly finding that inspectors aren't liable for anything that they can not see (which was hidden by the sellers). In fact, in my opinion. Having an inspection done at all was a complete waste of money because he noted all things as "normal settling".

Does anyone think that I would have any recourse or am I "dead in the water"?

I would really appreciate any feedback here.

ThanksWhat is the name of your state?

[justalayman]

what did the actual disclosure state in regards to any of the situations you now have found.

[lcannister]

Originally Posted by sgtdirtybum

Does anyone think that I would have any recourse or am I "dead in the water"?

Have you had a structural engineer inspect the property? Before you can talk "recourse" you need to know, beyond cosmetical appearances, what your damages actually are.

Then as the other poster pointed out you need to know what was in the seller's report verbatium.

[sgtdirtybum]

Justalayman,

The seller's disclosure said nothing about any kind of problems or issues to the best of their knowledge. They used Texas Association of Realtors Seller's Disclosure Form if you want to google it. They said absolutely nothing except to state that all things in the house were in perfect working order... when in fact... they later disclaimed verbally that there might be an issue with the dishwasher... Then they turned off the hot water heater and gas line bc they claimed it would save energy and prevent pressure build up (it has a blow off valve)... so after a couple days they finally turned it on only for my inspector and I to find that in fact the hot water heater was leaking and not in good use!

In regards to the old inspection... here is what it says verbatim in regards to the foundation:

Cracks in walls and/or ceilings
Cracks in exposed concrete floors
Cracks/ separations in mortar
Door and/or windo frames out of square
Comments: Cracking above fireplace - recommend repair to mortar. Visible crack in foundation or mortar on right side exterior. Tile cracked at kitchen and guest bath due to concrete cracks below.

Structural movement/settling noted: however, the foundation is adequately supporting the structure at this time.

[sgtdirtybum]

My inspectors report read:

"At the time of this inspection, based on a limited visual observation, there were no interior and/or exterior factors to indicate any major foundation repair needed.
Common minor cracks were observed in the foundation walls, interior walls and ceilings of the house. this implies that some structural movement of the building has occurred, as is typical of most houses."

This is unfortunately why the old inspection seemed to show that the sellers had fixed all the issues considering my inspection report did not note them....

and in fact.... this is a HUGE crack in the foundation...and not a cosmetic one.... I will have to have it fixed.... or it will continue to get much worse.

[lcannister]

I will have to have it fixed.... or it will continue to get much worse.

Maybe, maybe not, after 20 years I suspect the settling has finished several years ago. Sounds to me like you do have cosmetic issues that could be fixed rather than a home ready to fall off its foundation.

[justalayman]

The seller's disclosure said nothing about any kind of problems or issues to the best of their knowledge.

well if this is true and they had an inspection report that stated contrary information, it would seem the sellers have in fact been deceptive on the legally required disclosure. Although you may have signed a paper stating you had been given the report, I do not believe it relieves the seller of the requirement to accurately fill out the disclosure.

I would suggest having an engineer to verify the condition as either one that is continuing or as icannister suggested, is done moving.

Once you discover that, you ccan take the next step.

Depending upon the findings of an engineer, I presume, wold make a difference as to what you might want to do. In any case you would more than likely benefit from an attorney to assist you at that point.

If the engineer does find that the damage is structural, I would also consider an action against your home inspector. A trained inspector should be able to be relied upon to provide a complete and accurate report. If his lack of findings, if they should have been discovered by a typical inspector, causes you to act differently than what you would have if the damages were discovered, he may very well be able to be held liable as well. That is why they often carry error and omission insurance.

An action may be considered against your inspector,, even if you do not take action against the sellers.

[sgtdirtybum]

I really appreciate the input from all of you.... at this point, I feel that my life has really been completely busted at this moment... I had saved up, worked hard for six years to finally buy a home for my family, and then.... this happens. I have destroyed my wife and 2 boy's normal joys of getting into a new home from this!!

Unfortunately, my situation even gets worse..... just tonight.... I had a plumber come out to run a camera through my sewage drain line to inspect for any breaks.... I needed to do this first before any more money was put into this house since the repair costs to fix any such drain line break would really just put me under**************. well.... I also found out that I have a broken drain line!! It will be an additional $7k just to fix that..... not including a foundation repair estimate of $3500... mind you I paid top dollar for the home anyway and spent all saved money on things to improve the house upon move in (new carpet, new paint etc.)

Icannister... I appreciate your insight... and I pray that you are right... bc I do not have any more money to put into this house.... I will be forced to move my family into it as is... and I just pray that God will help keep any more problems from happening...

Justalayman.... thank you for your insight... I wish you were an attorney... unfortunately, after speaking w/ 2 attorneys... they are both claiming that if I had a copy of an old inspection report prior to closing..... and even if it said "major foundation failure" but yet hothing was listed on the Seller's disclosure.... in their opinion: the seller has still covered their liabilities!!! I think this is TOTAL CRAP!!! What that tells me is that an inspection means JACK SQUAT!! and the Seller's Disclosure means JACK SQUAT!!
What's even more comical than anything is the fact that ************** both attorneys still offered to sit down w/ me and peruse my docs, but at a rate of $300/hr!!! plus... a $1500 retainer just to start something!!! ALREADY MONEY THAT I DO NOT HAVE!!!

what a world we live in!! I've heard the phrase..... and man does it mean soo much to me now!!! "BUYER BEWARE"!!! I WILL PREACH TO ANYONE AS LONG AS I LIVE ABOUT THIS PHRASE AND HOW TRUE IT IS!!!

[justalayman]

ok, how about this. the inspection report you recieved stated the foundation is being properly supported at this time. That would tend to make me believe that the setling has ceased. An engineer would be the correct step in determining that. The report does not state major foundation failure, it states cracks or mortor in foundation but continued on to state that all is well with the actual foundation though.

If an engineer finds evidence to the contrary, the report is wrong and this along with the failure to disclose on the true disclosure form may help.

You , might also (actually already should have when buying a house) go to the local building department and look fro any work/building permits. This may be a clue to undisclosed problems whether they be actual improvements or troubles that were obvious to them.

It's a bear learning this after the fact but some determination and persistance may give you some ammo or in contrast, some peace of mind if you find these problems are merely cosmetic.

If you have the patience and determination, you may research with the Texas gov concerning real estate sales and correct procedure. This may help you in either accepting or refuting the attorneys advice. Not saying they are wrong but the fact we have so many court cases proves that there is always another point of view to condider.

Good luck

[lcannister]

Before spending, even the 3500 you think you need to on the foundation, get a structural engineer out there and be sure you need to spend anything right now!

There are products on the market that you can get and fill in that crack and not spend over a couple hundred bucks. That will eliminate a radon problem and you should do that soon.

Good luck and let us know what that engineer says, without that inspection you are dead in the water because unless you are qualified you do not know that you have a true structural problem or need so creative cosmetic fixes.

[sgtdirtybum]

Thanks guys!!

You have really been great at giving some very helpful advice. As far as the foundation goes for now... once I learned that it may take $10k just to fix a possible broken drain line (which I had the camera run 2 nights ago and there was really no big problem found)... My wife and I decided just to move forward in getting the house ready for move in.

I will see what it will cost to have an inspector come out and give me FACT, but at this time.... I am determined to make this house a livable great new home for my family...

I should have an engineer out by the middle of this week, so I can repost back to you both if you are wanting to hear what's going on.

Thank you very much and Have a Merry Christmas

[lcannister]

Heck yeah we want to know!!

Once you get in that new home you will find all kinds of things you want to do to decorate, paint etc. and some of this can just be incorporated in a little at a time. Enjoy the new home and have a great holiday in it!