Seller never disclosed that property was on a sinkhole

[Sarah Johnson]

Good day fellow investors. I need advise. I purchased an investment property, my first, in October 2019 in the Tampa, FL area. It’s a townhouse. The seller on the disclosure stated that the property has no sinkholes. Come to find out this week when trying to search for new homeowners insurance that in 2008 there was a remediated/stabilized sinkhole. Now I am having a difficult time finding homeowner’s insurance. I would have never purchased the property had I known this. I wanted some advise on what I can do. As I have the seller disclosure attesting that there is no sinkhole when there is in fact what actions can I undertake? Thank you 

[Moises R Cosme]

Check your P&S; you may have recourse if the Seller made specific representations. Issues like this are common in competitive markets, because Sellers force competing Buyers to purchase properties 'as is'. 'As Is' is a very broad term and if it is in your P&S, it likely closes the door on any recourse you will have.

We have standard offer paperwork with preset contingencies; this is a useful tool as you develop your real estate investment business.  

As it pertains to your specific issue, have the Attorney that represented you at the closing review the contract and the Seller's representations.  All of your recourse will be tied to the Contract for the sale of the property.