Seller Nondisclosure Issue in Minnesota w/ Active Lawsuit

[Meghan Roman]

- We purchased a duplex in February 2021. In July 2021 we learned there is an active lawsuit tied to our property where our seller is suing the previous owner regarding substantial driveway grading and basement water flooding issues that were not properly disclosed to us during the purchase. We had an inspection and while there were some signs of water seepage in the basement (the house is over 100 years old) the recommendation was to keep an eye on it but nothing more. No mention of issues with the driveway during inspection or any other time during our purchase process with either realtor or seller.

- Our seller (plaintiff) is claiming that the previous owner (defendant) did not disclose these issues to him and is suing for damages upwards of $40k. The seller (plaintiff) was awarded damages but the lawsuit is now up for appeal on August 25, 2021. When we read the Court Order Findings, the lawsuit says the seller lost money on our purchase because we refused to pay more because of the repairs needed. This never happened, nor were we aware of the repairs needed or of an active lawsuit. Both realtors can verify this never happened. 

- At this point, we’re trying to understand our options/rights since we now own the home and are the ones responsible for making the repairs. We also would not have purchased this home if we had known that it came with repairs that cost between $20-50k (based on estimates we received)

- We have reached out to the seller and his lawyer basically told us to pound sand. Both realtors won’t touch us or their brokers nor the title company. Everyone has been paid on this deal and now we’re left holding the bag. Both realtors, title company, brokers say they are not liable for the seller not disclosing the damage/cost of repairs or active lawsuit. We paid thousands of dollars for these professionals to do their jobs during the sale and we aren’t sure what we paid them for....

- Does anyone understand our rights or have any suggestions on what we should do? - Does anyone know of a good real estate attorney in Minneapolis, MN?

- Trying to keep it short and sweet at first but happy to provide more details. 

[Tim Swierczek]

@Meghan Roman I have used @Brad Schaeppi for multiple reasons including an urgent situation that revolved around a buyer who tried to back out the morning of closing.  Because the funds from the sale were dedicated to a purchase that had a $50K earnest money that was now non-refundable the consequences were severe.  Brad not only saved the day he was transparent, and reasonable in his recommendations and charges.  Brad is a pro and should be your first choice in my opinion.