Christopher A. Combs
Question: Three months ago, we listed our house for sale. We were home when our real estate agent walked through our house with the buyer and the buyer’s agent. In our laundry room, there was a stain from a leak in the ceiling. We had never noticed this stain before, so this stain was not disclosed on our Seller Property Disclosure Statement. The buyer’s agent said she would have the home inspector “check it out.” Our sale closed 30 days later. Three months after the closing, we received a letter from the buyer’s attorney saying that there had been a roof leak in the laundry room that had cost $18,000 to repair. The buyer’s attorney said that the buyer and the buyer’s agent never saw any stain in the laundry room. The buyer’s attorney enclosed a copy of the buyer’s home inspection report, which said nothing about the stain. The buyer’s attorney now wants us to pay $18,000 for the roof repair plus $3,500 in attorney’s fees. Do we have to pay?
Answer: Under the standard purchase contract, mediation is required before any lawsuit. A good mediator, like a good judge or good jury, should be able to evaluate the credibility of the witnesses and then negotiate a settlement. If there is no settlement, there will have to be a trial.
Note: Your real estate agent should probably have recommended updating your Seller Property Disclosure Statement to disclose the stain.
Contact real estate attorney Christopher A. Combs at chris@combsandsaal.com.