QUESTION

What are my legal oprions for a house that was fliped?

Asked on Jan 24th, 2013 on Real Estate - Maryland
More details to this question:
I purchased a home in Maryland on 01/17/2013 and on 01/21/2013 the sewer backed-up into my home. It was discovered that the sewage line is broken and needs to be repaired. The seller is a company that flips houses. My home inspection did not reveal the problem. I do not believe that the sellers had any knowledge of the plumbing issue. Nevertheless I know have a $4200 bill that and they are willing to pay half. Is there any legal action that would make them pay for the total repair.
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1 ANSWER

Business Litigation Attorney serving Bethesda, MD
2 Awards
Wow! Your question about a broken sewer line backing up into your home just sold to you in a flipped residential real estate contract raises a number of important issues that may be of broad general interest to readers of this site. I have been representing clients on both sides of contract breach issues in Maryland and D.C. for over 20 years. One of the first documents your Maryland lawyer will want to review is your real estate contract. Many realtors across Maryland use their county or regional board of realtors form contract. For example, in Montgomery County, the county board of realtors contract has a clause that requires the seller to check one of two boxes: generally, the first box is that the seller has disclosed all defects; generally, the second is that the seller will not make any representations about any defects. If the Buyer were in Montgomery County, and the parties used that contract, and if the seller checked the first box, and there were no addendums, generally, lack of knowledge by the Seller would not be a defense as to a defect in the house’s plumbing if the house’s plumbing was defective before the buyer received title. I can imagine scenarios that would change that analysis. What if the defect is in off-site plumbing? There are plenty of contracts executed that are privately drawn up or otherwise do not follow the exact language of the Montgomery County version where a seller -- that did not know of the plumbing defect -- might not be liable for the cost of repair. However, there are also defects that a court might conclude were inherently unsafe, like a plumbing problem that exposed occupants to toxic raw sewage. A court might conclude that had to be disclosed no matter the contract or the level of the Seller’s knowledge. There could be factual scenarios where the Buyer knew in advance of defects to the plumbing and therefore where a court might say it was "inequitable" to let a Buyer win. Has the sewage rendered the property uninhabitable, temporarily or permanently/ There could be a health risk for the current occupants that also decreased the resale value of the property. Of course, other factors can also intervene that would alter the above. This response is not intended to address all possible issues. This is at best a general overview. I encourage you, and all other readers, before you act (or decide not to take some action) to seek competent, local legal counsel who can address the specific facts of your particular situation. This web site and the responses herein, including this response, are designed for general information only. The information presented at this site should not be construed to be and is not formal legal advice. No attorney-client relationship exists and no attorney-client relationship is formed or created by this response or any response on this website. Furthermore, this does not represent the views or opinions of LexisNexis or its affiliated companies.  
Answered on Jan 26th, 2013 at 8:45 AM

This web site and the responses herein, including this response, are designed for general information only. There is no attorney/client relationship.

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