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Most people don’t realize that you can sue a home seller for not disclosing defects. It is the legal responsibility of a seller to reveal what they know about previous repairs or other conditions with the home. Let’s look at Texas law to determine when suing a seller for non disclosure is the best path forward.
What Must a Seller Disclose?
The seller disclosure statement contains information required to be disclosed by Section 5.008 of the Texas Property Code regarding material facts and the physical condition of the property. Check out What is a Seller Disclosure Form? to read about all of the details required of sellers in this statement. The disclosure statement includes almost everything you could think of about a home, from the appliances to the foundation, windows to insulation.
When Can I Sue?
As a homebuyer, you rely on the seller’s disclosure statement when buying a home. If the seller lies, the buyer is entitled to go after the seller for damages. As a buyer, you must often make significant repairs or overhauls because of issues omitted in the disclosure statement. As a buyer, you rely on that statement.
If your attorney can prove that the seller knew about the defect and intentionally failed to disclose it, your case has a chance for success. An example might be asbestos in the attic. Perhaps the owners knew about the asbestos but assumed that you would have no proof.
However, if you find the asbestos, your attorney may investigate and find proof of the seller’s foreknowledge of the problem. Perhaps the sellers had an inspection years before that mentioned the type of insulation. If your attorney finds this proof, your case against the former homeowner looks good.
In this example, the seller committed fraud by knowingly enticing you to buy the property without proper disclosure. The seller intentionally concealed defects and misrepresented the home.
If you must pay out of your pocket to remove the asbestos, you have suffered damages from their nondisclosure. In this case, you have a good chance of winning damages in court from the past owners.
When Sellers Conceal Their Lies
Many sellers know about defects but choose to conceal them rather than repair them. If they mask the imperfections by repainting or putting in new carpet, you may not know there is a problem until years later.
Let’s say the sellers put in wall-to-wall carpeting and list hardwood flooring as underneath. However, they fail to disclose the termite damage and dry rot to the wood underneath. The reason they installed the carpeting was specifically to cover the problems.
You bought the home with the understanding that the wood flooring underneath the carpet was in good repair. 6 years later, you pull up the carpet with the intent to strip and refinish the wood flooring below. At this point, you find the wood rot and learn of the significant damage under your feet all along.
The sellers should have checked the box disclosing awareness of termite damage or wood rot. However, they did not check the box or mention the problem to anyone at the time of the sale.
It would seem you have a case against the seller. However, in Texas, there is a statute of limitations.
What Is The Statute of Limitations?
The statute of limitations for breach of contract is four years in Texas. From the time you both signed the contract until you file your case must be four years or less. Your best chance for a successful suit is to use your time wisely. Find issues early if you need to bring a lawsuit for damages against the seller.
If you can prove fraud, the statute of limitations is also four years. Sometimes the state will allow stretching the statute of limitations in fraud cases. They will start the clock to begin when you reasonably should have known about the fraud.
In the wood rot case above, your statute of limitations for breach of contract has run out. However, you may be able to work with an attorney to have the state make an exception in the case of fraud since the owner deliberately concealed the damage before they sold the property. You won’t know if your case will go forward unless you try and see what happens.
Choosing To Sue
It’s crucial to look at all of the factors in a case for nondisclosure before considering filing charges. Working with an attorney is the best way to find out if you have a chance. Real estate attorneys work with cases involving nondisclosure and can tell you how these types of cases play out in court in real life. They know and understand what judges look for before awarding damages and how to walk you through each step of a case involving fraud.
We Can Help
If you have found damage or a non-disclosed problem with your home and want to fight for your rights, we can help. We work with real estate issues such as nondisclosure, mortgage modifications, foreclosures, and other property issues such as deeds. Our real estate legal team would like to help you navigate each step of this process, starting with a free consultation to determine whether your case has merit in the Texas legal system. Contact us today to find out how we can help you.