No seller disclosure of wet basement

[milhouse]

I purchased a home in Minnesota in July 1998. The Sellers disclosure statement made no mention of a wet basement. Since then, we have had fairly regular occurences of wetness in the basement, mostly resulting from moderate to heavy rain. When we bought the home, we did not notice any evidence of wetness prior to closing because there was furniture blocking the wall in question and because our Realtor did not schedule a final walk through. After closing we noticed tell-tale signs of water damage. Below one of the windows we noticed the paint on the wall was curled and cracking and it formed what looked similar to sand when water is streaming over it. In addition, that entire portion of sheet rock had been repaired several times and poorly. The previous homeowner had used cardboard and puttied it over the holes in the wall. The evidence of repair was pretty consistent along the length of the wall from the floor and up the wall about a foot. In hindsight, I cannot explain why my wife and I did not make issue of this right away but we did not. The good news is that our statute of limitations has not expired because we did not sign the arbitration agreement. I have since contacted an attorney and he thinks we have a pretty good case but at the advice of another real estate agent, one that I trust, I am trying to handle this on my own. I have already fixed what was causing the problem. There was a negative grade into the window well above the wall I described. It cost me about $20.00 to fix. At the advice of the agent I called the sellers to resolve this diplomatically. The conversation was civil and the ball was left in my court to specify a dollar amount. The bid is in for the replacement of the carpet but I have not gotten the bid for the replacement of the sheet rock. Because it's been a while since our conversation I would like to send a copy of the bid a long with a letter demanding payment. Since settling this between ourselves without involving attorneys will potentially save me money and a court battle, I'm willing to to accept just the cost of the carpeting since I can replace the sheet-rock myself and it will not cost anything. The question is this. How should I write the letter? Is there any legal verbage I should include or any state statutes I could reference. I guess the idea is to make them thinks twice about deciding to enter into a legal dispute. I'd like to make it sound difficult to fight. From my perspective the fact that I waited 2-years will not be favoreable if I had to go to court to fight this and I'd rather avoid it and I'd like to persuade them that avoiding it would be in their best interest as well.
Thank you!!

 

[HomeGuru]

<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by milhouse:
I purchased a home in Minnesota in July 1998. The Sellers disclosure statement made no mention of a wet basement. Since then, we have had fairly regular occurences of wetness in the basement, mostly resulting from moderate to heavy rain. When we bought the home, we did not notice any evidence of wetness prior to closing because there was furniture blocking the wall in question and because our Realtor did not schedule a final walk through. After closing we noticed tell-tale signs of water damage. Below one of the windows we noticed the paint on the wall was curled and cracking and it formed what looked similar to sand when water is streaming over it. In addition, that entire portion of sheet rock had been repaired several times and poorly. The previous homeowner had used cardboard and puttied it over the holes in the wall. The evidence of repair was pretty consistent along the length of the wall from the floor and up the wall about a foot. In hindsight, I cannot explain why my wife and I did not make issue of this right away but we did not. The good news is that our statute of limitations has not expired because we did not sign the arbitration agreement. I have since contacted an attorney and he thinks we have a pretty good case but at the advice of another real estate agent, one that I trust, I am trying to handle this on my own. I have already fixed what was causing the problem. There was a negative grade into the window well above the wall I described. It cost me about $20.00 to fix. At the advice of the agent I called the sellers to resolve this diplomatically. The conversation was civil and the ball was left in my court to specify a dollar amount. The bid is in for the replacement of the carpet but I have not gotten the bid for the replacement of the sheet rock. Because it's been a while since our conversation I would like to send a copy of the bid a long with a letter demanding payment. Since settling this between ourselves without involving attorneys will potentially save me money and a court battle, I'm willing to to accept just the cost of the carpeting since I can replace the sheet-rock myself and it will not cost anything. The question is this. How should I write the letter? Is there any legal verbage I should include or any state statutes I could reference. I guess the idea is to make them thinks twice about deciding to enter into a legal dispute. I'd like to make it sound difficult to fight. From my perspective the fact that I waited 2-years will not be favoreable if I had to go to court to fight this and I'd rather avoid it and I'd like to persuade them that avoiding it would be in their best interest as well.
Thank you!! <HR></BLOCKQUOTE>

HomeGuru response and opinion:
If you are going to represent yourself and not hire an attorney to represent you, do not expect other attorneys such as myself to help you draft a letter and hand you State Statutes to reference. This website provides free advice not free legal research and drafting of a demand letter.

Furthermore, the statutes of limitations are not tolled just because you did not sign an arbitration agreement. The SOL and arbitration are two entirely separate issues. There are various issues in your post that make me compelled to say that you need the services of a real estate attorney.

[This message has been edited by HomeGuru (edited October 09, 2000).]

 

[David J. Miller]

Homeguru is once again correct. Milhouse probably needs an attorney. However, I think what Milhouse is referring to concerning the arbitration disclosure is had he signed it, he'd have only 18 mos. in the state of MN to formulate a complaint and arbitrate. Because he did not sign the arbitration agreement, he is not bound by this 18 month limitation. This is just my experience. I am not an attorney. Furthermore, it seems based on his explanation that he has essentially gotten so far as to have the sellers at least intrested in entertaining a settlement amount. What if milhouse sends even an amateurish demand letter? The worst thing that could happen, and correct me if I'm wrong Homeguru, is the seller would simply decline, leaving the option of hiring an attorney and sueing. I say this with an implied question mark at the end. None of this is to imply that Homeguru should, as he said, draft a letter and hand-out state statutes. Once again, I do see milhouses point though. I've had similar experiences and have known lots of people with similar experiences and it seems as though the success rate is very low and at $180 an hour it's a big chance to take.
Anyway, these are just my HUMBLE opinions and not meant to be construed as advice nor are they meant to challenge the expert, Mr. Homeguru.

 

[HomeGuru]

<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by David J. Miller:
Homeguru is once again correct. Milhouse probably needs an attorney. However, I think what Milhouse is referring to concerning the arbitration disclosure is had he signed it, he'd have only 18 mos. in the state of MN to formulate a complaint and arbitrate. Because he did not sign the arbitration agreement, he is not bound by this 18 month limitation. This is just my experience. I am not an attorney. Furthermore, it seems based on his explanation that he has essentially gotten so far as to have the sellers at least intrested in entertaining a settlement amount. What if milhouse sends even an amateurish demand letter? The worst thing that could happen, and correct me if I'm wrong Homeguru, is the seller would simply decline, leaving the option of hiring an attorney and sueing. I say this with an implied question mark at the end. None of this is to imply that Homeguru should, as he said, draft a letter and hand-out state statutes. Once again, I do see milhouses point though. I've had similar experiences and have known lots of people with similar experiences and it seems as though the success rate is very low and at $180 an hour it's a big chance to take.
Anyway, these are just my HUMBLE opinions and not meant to be construed as advice nor are they meant to challenge the expert, Mr. Homeguru. <HR></BLOCKQUOTE>

David, I appreciate your comments and you may be correct in that the writer may have nothing to lose by sending a layperson type of demand letter. I did not want the writer to lose position and forfeit any rights to settle. I do not want to imply that attorneys are always right and always win cases for their clients. It is just that the right attorneys have superior knowledge and experience in these areas to better help the writer and those in similar circumstances.

Please note that I personally have no problem with indivduals (laypersons, attorneys, ET's etc.) challenging me or disagreeing with my comments.
Provided their foundation is via intelligent theories, substantative legal support or common sense/common law. Ignorant, defensive, disrespectful, bull-headed persons need not apply. Everyone is entitled to their own opinion but when you partake, please make it an intelligent one.

 

[David J. Miller]

Homeguru, Thanks for taking the time to respond to my thoughts.

You know, I've been participating in this site for just a short time and I'm really enjoying what little insight I can offer but more particularly I am enjoying reading yours as well as Tracey's, Peter's, and IAAL's (sorry if I forgot anyone) responses as well. I'm really learning a lot. The problem is I am enjoying it so much, it's becoming addictive. (hahaha)I guess it's better than being addicted to porn sights, heeheehee. I've been considering law school for some time and this experience has sort of re-kindled that desire. Anyway, you guy's should be applauded for your volunteerism and those of you posting questions should keep this in mind (in-light of all of the negative posts lately).

I'm going to shamelessly market myself now. Do any of you know any GOOD real estate attorney's in the Minneapolis/St. Paul area? They can be a tremendous referral source for new mortgage business. If I'm going to make it to law school I'll need more business to get my bills paid off.

Keep up the good work!!!