Seller failed to disclose an insurance claim.

[Liel Lazar]

Hi everyone,

Has anyone dealt with sellers who didn’t disclose an insurance claim? We were supposed to close on a property in three days, but the seller didn’t mention an insurance claim related to the air duct in August 2023 (the home was built in 2019). Their listing agent said they forgot about it and considered it a small claim not worth mentioning. Can we back out of the contract due to this misrepresentation? We’ve lost trust, especially with the uncooperative attitude of the listing agent. The sellers 
don’t want to return the earnest money, creating more problems.

If anyone has experience with this, could you advise on legal options? Any insights or guidance would be appreciated.

Thank you for your time and help!