More details to this question:
I am purchasing a small house with a crack in the slab which caused a crack in the outside wall. I'm 2 days away from signing the loan docs. I have an estimate from a general contractor to fix it but it wasn't seen by a structural engineer. I've been told by this contractor the crack was caused from water and not land slippage. When I resell the house how much do I have to disclose about the crack and how it was fixed? Will I be able to just disclose that it had a crack but was repaired? I only found out it wasn't seen by a structural engineer by looking for a cheaper estimate from a concrete contractor who wouldn't fix it or even look at it without the structural engineers recommendations. Is having a general contractor fix it good enough?
1 ANSWER
Since you know about the crack, it is your responsibility to figure out how bad it is, whether it can be fixed, whether it can be fixed economically, and whether or not to buy the property. The seller has satisfied its obligation to make sure you know about it.
Whether or not you need a structural engineer in addition to a general contractor is not a legal question. It really depends on the qualifications of the contractor and your confidentce in him. I know some contractors whose opinions I would accept on this issue. Others, I would want to hear from an engineer. If you're asking, you should probably get an engineer to assess the situation, too.
If the problem is water, how is the repair going to prevent it from happening, if it ever rains again?
If a new buyer will not be able to see the crack after the repair, because it will have been covered up, then you will have an affirmative duty to disclose it. In theory, if it really has been fixed, then nothing will ever happen and no one will ever have any reason to sue you about it. What if the fix doesn't work? What if the contractor is wrong? Then it will be something you should have disclosed to the buyer. I recommend disclosing all repairs.
If you appreciate this free advice, please remember to refer me to any friends or acquaintances who need a lawyer. Referrals are still our best source of new business.
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Dana Sack
Answered on Oct 19th, 2015 at 5:18 PM