Undisclosed foundation repairs and recourse

[Carson Eagle]

Purchased a home two years ago, had a home inspection. Inspector mentioned minor cracking in stem wall, nothing of major concern. Suggests having a foundation specialist look at if there is concern, which was not done. 

Sellers said nothing in disclosure about foundation issues or repairs/work done previously. 

Two years later, I put the house on the market. Potential buyers inspection reveals major foundation issues. Things have worsened since my purchase. I take the house off the market. 

Now I start digging for information, and request a foundation specialist to come to the home and provide an estimate. Just by chance, this company worked on the home for the seller I purchased from, oh really.

I obtain all documentation from this company, in regards to what the seller paid to have done. No permits were drawn for this structural work as required by california building code.

Further investigation of the foundation leads to $65,000 worth of work needed, with engineering required to be warranties for life. 

I.want the seller to pay for the repairs, since what they had done to the foundation was not disclosed. They have denied mediation, refused payment, and we are in litigation. 

I want to hear opinions and how you think this will end. Thanks in advance.

[Tim Jensen]

I will have to disagree with the lawyer here.  You need to disclose known defects, you are aware of. If they got it repaired, and it is no longer a known defect, they don't need to disclose.  Following that logic, you must disclose the roof leaked once, even though it has been replaced and been fine ever since.  Same thing goes for water heater, furnace, AC, plumbing leak, toilet leak, etc.

This is the exact language from the Illinois Association of REALTORS® RESIDENTIAL REAL PROPERTY DISCLOSURE REPORT

In this form, “am aware” means to have actual notice or actual knowledge without any specific investigation or inquiry. In this form a “material defect” means a condition that would have a substantial adverse effect on the value of the residential real property or that would significantly impair the health or safety of future occupants of the residential real property unless the seller reasonably believes that the condition has been corrected.

I think you have an uphill battle, unless the information from the foundation contractor shows it was still a problem after the repair, especially since you got a home inspection.

Just my opinion. Good Luck