Advice on Previous Fire Discovered in Inspection during Purchase of a Property

[Andres Ruiz]

I am under contract on a property. The sellers did not disclose that there was a previous fire in the home. However, during the inspection of the home, the inspector found evidence that there had been a fire. Everything appears to have been repaired but now need to find permits, etc. to make sure it was done properly. Any advice? We would need to walk away from ~$10K so I'm trying to see if there's a path forward.

[Bill B.]

1) ask your realtor if the seller was required to disclose a previous fire and they "forgot". If so, you have nothing at risk and you can request your EMD back and just walk away.

2) ask your realtor what the common discount is in your area for fire damaged homes if any. Ask for that amount of a discount for forgetting to disclose the fire. 

3) you should be able to walk anyway as your inspection contingency came back unsatisfactorily. 

4) is there really any structural damage or did they just leave behind charred by functioning lumber?

I’d be disappointed they didn’t disclose it (if they knew and it didn’t happen 30 years ago and 2 owners ago.). But if you can’t smell it and it’s not structural. It’s basically an escape clause for you if you want to bail but not a real issue.