Termite Damage Not Disclosed

[Tri Le]

Hi BP, 

I was hoping if someone could help provide insight into a situation we encountered on the recent purchase of a house.  

We closed July 31st and had an inspection June 23rd.  We moved in on August 26th.

The sellers did not disclose any termite damage, prior knowledge of termite damage, or  prior treatment for termite damage.  The inspector also did not mention any signs of prior termite damage.

When we moved in, we discovered the floors were uneven and promptly had this re-inspected.  The foundation specialist and pest control people said there was extensive termite damage and this had been present for many years.  They both suggested that the inspector missed this on his inspection.  Cost to repair will be approximately $7,000-10,000.

Note, we have already closed.  

We contacted my realtor who called the sellers, and he did find out that they knew about the damage/prior treatments, but did not disclose this on the disclosure form.

Legal action against the seller and the inspector is a consideration, but it may not be worth the effort as legal fees may exceed the value of litigation.

Although the cost to repair the damage is affordable, and we are likely to repair the damage without pursuing litigation, I am curious to hear of other homeowners/investor's experiences.

Thank you!