SOS for my sis: New House is a BIG LEMON!

[Melaine]

My sister and her husband just purchased their first house a few months ago and it has been a huge nightmare. They knew it was a flip, but inspections were fine so they proceeded with purchase. They have had massive flooding that has reappeared a total of three times, ruining floor and walls and causing mold issues that they are worried will have health repercussions. They have a two year old and a baby and have basically not been able to unpack or resume normal life because of these horrendous renovations and repairs (still ongoing). It is completely obvious that there was significant deceit and manipulation on the part of the seller (it turns out they installed a wall to cover a plumbing problem). The plumbing issue was fixed but today they had more flooding! It just seems like a completely shady seller took their money and left them with a lemon.

They are contacting lawyers at this time, but I wondered if anyone would have any specific advice on how to proceed? They live in NC if that makes any difference for those in the know on the legalities.

[specialp]

Inspections were fine? Was there any mention of evidence of water damage or flood, for example, in the inspection report?

[Melaine]

Inspections were fine? Was there any mention of evidence of water damage or flood, for example, in the inspection report?

I will double-check with her but I am pretty sure the answer is no. She also mentioned that they checked "no" on every box for disclosure in the paperwork so there were absolutely no expressed concerns before purchase.

[bisous]

I think this will vary widely by state. I’m in a state that has a lot of protections for consumers but I have no idea about NC. Hopefully someone will chime in. I feel like if they checked boxes that should be a violation no matter what state they are in!

[WatchingThemGrow]

UGH. That is horrible. It sounds like a few houses in our neighborhood. They were built in the late 60's, sit in the 100year floodplain, and have continual problems. One neighbor's house has flooded 2x, up to the couch cushions. They are rebuilding with waterproof materials so it won't be as damaging next time.

Is FEMA involved at all? I know that in the last year or so, 3 houses about a mile from mine were purchased and torn down. The families took the money and bought townhouses. I also know that FEMA is sending a check to our neighbors who are renovating, but they wished theirs qualified for the tear-down plan. Apparently it was too expensive.

Is there any way to get a landscape architect? drainage company? or someone to regrade the property so water goes away from the house? I do know a rental friends were in where one kid's bedroom in the split level kept flooding from backyard water running in. That seems like something that could be fixed.

And yes on the health questions. Boilermakermom works in the air quality industry, I believe, and may be able to guide her. We got so sick from mold.

[Myira]

What a nightmare! I hope they can work with a good real-estate lawyer and hold the seller accountable for lying on the sellers disclosure (Was the seller just a flipper or did he own the property for a while? When we were looking at a flipped house, my agent told me that the flippers don't mention anything on the sellers disclosure and are able to get away with that) if it can be proven that the damage was done during his/her tenure.
I also read that you can request a C.L.U.E. report from the insurance company to see every claim filed on the property in the past, I'm sure the lawyer can help in this regard.
Hugs to your sister and family.

[div_0305]

This is unfortunately something that happens in every state. I personally know too many people who bought lemons--deceived by unscrupulous builders, flippers, inspectors and real estate agents. Nearly every one who has "finalized" whatever actions they were able to take received NOTHING in compensation--the builder/flipper went bankrupt or had zero assets. The rest are in a legal nightmare limbo--unable to live in their house or outside of the time they had a warranty on the house (new construction warranty). I think the key is finding the cream of the crop building inspector and looking for only the finest credentials and licensing. I did not let our realtor choose our inspector. She was pissed I picked someone who took at least 3 times as long to do an inspection, but I let her stupid remarks roll off my back. I was paying him, he worked for me and only me. He had no financial (informal or formal) relationship with my realtor and did not worry about his next referral if he told me the house was a lemon.

[westwoodmom04]

Your sister definitely needs to consult a real estate lawyer. Unfortunately, misrepresentations on the disclosure are often very hard to prove because the seller will just claim they didn’t have any issues. A flipper very well may never have lived in the house. But maybe some of the subcontractors will be willing to testify against them. The fact that the inspection turned up no issues also doesn’t help.

[magnoliaparadise]

This is unfortunately something that happens in every state. I personally know too many people who bought lemons--deceived by unscrupulous builders, flippers, inspectors and real estate agents. Nearly every one who has "finalized" whatever actions they were able to take received NOTHING in compensation--the builder/flipper went bankrupt or had zero assets. The rest are in a legal nightmare limbo--unable to live in their house or outside of the time they had a warranty on the house (new construction warranty). I think the key is finding the cream of the crop building inspector and looking for only the finest credentials and licensing. I did not let our realtor choose our inspector. She was pissed I picked someone who took at least 3 times as long to do an inspection, but I let her stupid remarks roll off my back. I was paying him, he worked for me and only me. He had no financial (informal or formal) relationship with my realtor and did not worry about his next referral if he told me the house was a lemon.

Yes yes yes.

[magnoliaparadise]

I just met a couple who went through this - and, same thing - put their life savings in a home that has water damage and continual flooding. We met at a home buying seminar and the real estate agent said, in response to their story, that the old owners were liable (at least in this state) if the couple had asked point blank if there had been water damage before buying and the listing agent had said no.

My comment was... if that isn't in email or written, can't the agent just deny that the question was asked and s/he said no?

I don't know the answer to that, but wanted to share that in the hope that your sister asked directly and got an answer that shows that the owners/listing agent was lying.


Good luck to her. So extremely upsetting!!!!

[DietCokeLover]

Have they asked the neighbors what they know about the house? Seems like if there had been ongoing flooding issues, somebody would have seen the previous owners making repairs or something. Could help prove they were being deceitful.

[KpbS]

Have they asked the neighbors what they know about the house? Seems like if there had been ongoing flooding issues, somebody would have seen the previous owners making repairs or something. Could help prove they were being deceitful.

Yes, this is good advice.

They need to contact a lawyer and pursue legal action ASAP. I'm sorry. The same happened to friends of ours this year also.

[marymoo86]

Ongoing flooding - from rain? Plumbing issues? I'm not sure what you mean.

There's been 2 hurricanes in the last few months so flooding from that has hit a lot of places? Or do you mean shoddy plumbing?

[DualvansMommy]

Is the house in a known flooding zone? Cuz if it is, then the oneus is on the buyers to do diligent research.

Also since inspection passed it without any glaring issues, it’s much harder to have a legal recourse unless the buyers could prove the sellers lied.


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[TwinFoxes]

Is the house in a known flooding zone? Cuz if it is, then the oneus is on the buyers to do diligent research.

Also since inspection passed it without any glaring issues, it’s much harder to have a legal recourse unless the buyers could prove the sellers lied.



Again, things like this are really state-dependent. Like Bisous said, California has very strong consumer protections. A standard contract to sell a house is pages and pages long, here in Virginia it is super short. The seller pretty much doesn't have to disclose anything. In California the onus is on the seller to disclose a lot of things.

I think this sounds like a complete nightmare. Your sister should find a *reputable* attorney (don't want to get cheated twice) and perhaps look into contacting the Real Estate licensing board. Good luck to her.

[JBaxter]

Ongoing flooding - from rain? Plumbing issues? I'm not sure what you mean.

There's been 2 hurricanes in the last few months so flooding from that has hit a lot of places? Or do you mean shoddy plumbing?

Im going to Echo Mary. My moms house had water in it for the first time since 1972 this year 3 different times. The rain in southern PA where she lives was CRAZY this year. Have they spoken to the neighbors did the house have a history of flooding or shoddy plumbing?

[carolinacool]

I agree that I’m not sure if this is a plumbing issue or flooding. I live in North Carolina. We have some very good friends who live in a split level. The rain we got from the hurricanes cause the lower level of their house to flood. They are not in a flood zone. They have been in their house nearly 10 years, and had never had anything like that happen before. They also learned that they could not get flood insurance for future problems because they aren’t in a flood zone. They ended up having to replace some wood flooring that they just put in two or three years ago. If it is flooding damage, and not plumbing, I’m afraid your sister could be out of luck.

[legaleagle]

How has the homeowner's insurance company been to work with? My sister's friend bought a house a few years ago from the original owners. Turns out the block it was on had been a demonstration house on the "wonders of asbestos" They opened a wall to fix something minor - the wall was filled with asbestos installation that then got on everything & in the HVAC system and they had to trash basically the entire contents of the house and get rid of asbestos in a bunch of different places. They had 2 preschoolers and a newborn at the time. Their insurance did cover it all so they didn't end up suing anyone They had purchased from the original owners who had no idea and were horrified.

[Melaine]

I agree that I’m not sure if this is a plumbing issue or flooding. I live in North Carolina. We have some very good friends who live in a split level. The rain we got from the hurricanes cause the lower level of their house to flood. They are not in a flood zone. They have been in their house nearly 10 years, and had never had anything like that happen before. They also learned that they could not get flood insurance for future problems because they aren’t in a flood zone. They ended up having to replace some wood flooring that they just put in two or three years ago. If it is flooding damage, and not plumbing, I’m afraid your sister could be out of luck.

It's actually both :-( They had bad plumbing that the previous owner tried to hide by construction of a wall. Pipes burst, flooding everywhere. Now they are having weather-related flooding that is sounding to be unrelated to the plumbing issue, but such a huge pain! I feel so bad for her.

Thanks for all the advice, she is following the thread!!!