Dishonest Disclosures -

[John Lindemann]

My wife and I recently found a house that we wanted to buy for ourselves to move into.  The seller provided disclosures and we reviewed them then put in an offer and after some negotiations we got the house under contract.  I then spent several weeks lining up financing and inspections.  One of my inspections was for the pool and hot tub.  When I arrived at the house for inspections the seller was there and I immediately noticed water all around the hot tub.  I asked him if it leaked and he said yes it did.  He had not disclosed that but I know he had prior knowledge because he told me in conversation that he has had a company come out to give an estimate on repairing it...the company recommended that he not waste money on it but rather just replace it.

So...now I've spent nearly $900 on inspections and the contract is going to fall through because I asked him for a concession on the hot tub in addition to our TRR.  My question is do I have any legal ground to stand on for a small claims suit against them for the inspection cost?

To put things in perspective:

List price: $230k
1st offer: $210k
2nd offer: $215k
(then we said we were done but then when looking back at pictures...funnily enough we noticed the hot tub and that made us feel comfortable increasing our offer)
Final contract price: $220k

After inspections I asked for $3,300 in concessions to cover replacement of the hot tub and dishwasher.  Obviously that doesn't cover full replacement but in trying to be fair I valued these at what they meant to me when submitting my offer price.

Hot tub replacement cost: $5k
Other repairs expenses: ~$3k
TRR: $1,100

They also offered to do $1,500 in concessions. so of the approximately $8k needed in immediate repairs they are offering $2,600.  I'm okay splitting some of the cost but there isn't margin in the deal for me to cover that much of it.  As of now I have asked my Realtor to cancel the contract.

[Russell Brazil]

@John Lindemann If you sue....be prepared for him to counter sue you.  Also be prepared for the fact that the court is as likely to rule in his favor as it is in yours....which means you could conceivably end up owing the seller and the courts thousands of more dollars. If this went to court it would very likely be a tossup, 50/50.

Part of the process of buying real estate is having to pay for the due diligence. We pay for inspections and appraisals.  If we choose not to buy it we are not entitled to recover the money we spent.  It is impossible for a seller to list every defect with a home.  Sellers are held by courts to be responsible for known material defects.  Leaky faucets, and yes even a leaking hot tub will not likely have the court rule in your favor.  If the basement gets flooded with 6 inches of standing water after each rain fall, and the seller left that out...then you may cause for action.