Seller didn't disclose hail damage

[lucy9869]

What is the name of your state (only U.S. law)? Oklahoma

The seller filed a claim online for hail damage two hours before we signed the contract. Unfortunately, our inspector (who filed bankruptcy) didn't walk the back half of the roof, and didn't catch the hail damage. The seller received the insurance proceeds prior to closing, but did not disclose it to us because the inspector didn't find damage. She said we accepted it "as is" and she doesn't owe us any money. We found out after moving in that every single person on our street had their roofs totaled from that storm. Could she really get away this and net $14,000 at our expense? Our insurance company doesn't know about the roof damage, and I'm sure we would get canceled if they found out. They replaced the roof on our house we sold because it had hail damage from that same storm. Thanks in advance for any advice.

FYI, her insurance company made the check out to her, not her mortgage company.

 

[Mass_Shyster]

Check with an attorney, but......

Under the doctrine if equitable conversion, you acquired equitable title to the home when the contract was signed. Seller put in a claim on your property.

 

[HomeGuru]

The seller had a right to file a claim since seller still had title to the property. Notwithstanding, the seller should have disclosed the damage and the claim.

 

[justalayman]

What did the seller indicate on the sellers disclosure for in this section:

Additions/Alterations/Repairs

8. Have any additions or alterations been made without required permits? Yes No Unk
9. Are you aware of previous foundation repairs? Yes No Unk
10. Are you aware of any alterations or repairs having been made to correct defects or problems? Yes No Unk
11. Are you aware of any defect or condition affecting the interior or exterior walls,
ceilings, slab/foundation, basement/storm cellar, floors, windows, doors, fences or garage? Yes No Unk
12. Has the roof ever been repaired or replaced during your ownership of the property? Yes No Unk
13. Approximate age of roof, if known_________Number of layers, if known_________ Unk
14. Do you know of any current problems with the roof? Yes No Unk
15. Are you aware of treatment for termite or wood-destroying organism infestation? Yes No Unk
16. Do you have a termite bait system installed on the property? Yes No Unk
17. If yes, is it monitored by a licensed exterminating company?
(Check one) ___ yes ___ no Annual cost $ _________
18. Are you aware of any damage caused by termites or wood-destroying organisms? Yes No Unk
19. Are you aware of major fire, tornado, or wind damage? Yes No Unk

If they indicated roof damage on that form, this section of law rules:

section 835. limitation of seller’s liability
a. the seller shall not be liable for a defect or
other condition in the property if the existence of
the defect or other condition in the property was
disclosed in the disclosure statement or any amendment delivered to the purchaser before acceptance
of the offer to purchase.
B. the seller shall not be liable for any erroneous, inaccurate or omitted information supplied to
the purchaser as a disclosure required by this act if:
1. the error in accuracy or omission results from
an approximation of information by the seller provided:
a. accurate information was unknown to
the seller at the time the disclosure was
made,

If they did not indicate there was damage to the roof, then, simply put, they lied on the disclosure form. That is a big mistake. Time to find a lawyer if they lied on the disclosure form.

 

[HomeGuru]

What is the name of your state (only U.S. law)? Oklahoma

The seller filed a claim online for hail damage two hours before we signed the contract. Unfortunately, our inspector (who filed bankruptcy) didn't walk the back half of the roof, and didn't catch the hail damage. The seller received the insurance proceeds prior to closing, but did not disclose it to us because the inspector didn't find damage.

**A: the seller needed to disclose regardless and their disclosure should not be based upon your inspector's findings.
Although if your inspector found problems that were not included on the disclosure and you notified seller, seller is obligated to amend the disclosure statement.

 

[Mass_Shyster]

The seller had a right to file a claim since seller still had title to the property.

Since OK still recognizes equitable division, seller had legal title, buyer had equitable title.

 

[HomeGuru]

Stevef, at the time of the filing of the insurance claim the buyer did not have any title to the property since at that time there was no contract.

 

[lucy9869]

more info

Thanks for helping me with this. We do have an attorney (my dad), but this isn't an area he specializes in. I'm trying to do a lot of my own research since we aren't paying him, hopefully he will get compensated by the seller. The seller is threatening bankruptcy, but she lies a lot, so I doubt it's true.

For some reason, she was claiming she filed the claim online after the contract was signed. So, she was saying the disclosures didn't have to be amended because she didn't have knowledge of hail damage at the time she signed the contract. We subpoenad the claim, and it shows she filed the claim online two hours before we signed the contract.

Her argument is that we signed a Closing Acknowledgement and Release. "Inspection. Buyer has either inspected the Property in accordance with the contract or by acceptance of the Deed to the Property, Buyer waives Buyer's right to inspect. In either event, the Property is accepted in its present condition. Buyer hereby waives all claims to repair, replace, or remedy any defects in the property and does hereby forever release and discharge the seller . . ."

It gets more complicated because her realtor (who works for the builder/developer of the neighborhood) is the one that tipped off my realtor after closing. He told our realtor to have us get our roof checked out. He knew she received the insurance money, but said he would deny it if ever asked.

I could kick myself for feeling bad for her because she was going through a divorce with three kids, so we wanted to give her the asking price. She went on a three week trip through Europe after closing. Now, we are stuck with a house with a totaled roof that costs $17,000 to repair.

 

[justalayman]

state law requires the disclosure be amended if new information is discovered prior to closing.

I see no defense for the seller.

 

[TigerD]

....We do have an attorney (my dad), but this isn't an area he specializes in. ....

Ask Dad to refer you to an attorney who does specialize in this area. There is a reason for specialization.

DC

 

[HomeGuru]

The seller's argument is off base. Read the OK state real estate disclosure law.