Underground Freezing Pipes Not Disclosed by Seller

[Chivas Miho]

Hey BP, so I landed my first OSS rental property a week ago in Michigan and while I'm celebrating my victory as a new RE investor, I find out yesterday that the main water line to the building froze and the tenants have no water.  The water company came to inspect the situation and found that the part of the line that is frozen is between the street and the main water meter underground.  The water company also told my Property Manager that my building has this issue every year and we found out that the water line was installed only 12" below grade and not below the frost line.  This wasn't disclosed by the seller and I'll need to spend some cash to excavate the line and repipe it 4 to 5 feet below grade.  Has anyone experienced issues where the seller did not disclose information that caused a repair bust and any recommendations on how to go back to the seller to get some assistance in the repair budget?

[Steve McGovern]

I hate to ask and add to your misery, but did you review the property dockets at Zoning, Planning, and Building Inspection prior to purchase? Those are public record, and IF (if, if, if) there’s a violation or permit or note in the files, then seller could argue that you Should have known.

I can’t say this enough— ALWAYS pull the building, zoning, and planning files with the muni/county offices.