You should act quickly if you find water damage. Contact your real estate attorney, who will check if your claim is timely under the law. They will also check your purchase contract and Seller's disclosures and review the seller's warranties and obligations.
Unless it's written into the Purchase and Sales, they are not responsible for repairs after closing. We sold our house back in '97. Paid for an insurance policy for all of the big things in the house should they break, like the furnace, the pool, the appliances, etc.
Most statutes of limitations are somewhere between two and ten years, but this will depend on where you are and what type of claim you have.
Unless you can prove that the previous owners and/or realtor knew about those issues, and purposely hid those things from you, then fixing those things would be left to you. If you can prove that, you will probably have to go through the court system to get them to pay for those repairs.
It's illegal, in most states, and unethical to leave property damage undisclosed. Being a law-abiding citizen is the most important reason to report water damage before selling, but you should note: today's buyers are thorough.
First and foremost, it's important to understand that a home with water damage can be a major financial investment. Not only will you need to make repairs to the property, but your insurance rates may go up once you own a water-damaged house.
California law states that a seller who willfully or negligently fails their duty to the seller shall be liable for the amount of damages suffered by the buyer. The remedies California law offers for the buyer are: Damages. Specific performance (if the seller is forced to fix the error rather than pay money for it)
Disclosure Issues: Laws about disclosing property defects vary by state but can range from 2-10 years. Some laws might also vary depending on the severity of the issue. Warranty Claims: Coverage timeframes may depend on the home warranty terms, which usually last 1-2 years.
Liability often extends to either party's real estate broker, real estate agent (Realtor), or home inspector. Every case is different. If the homebuyer has evidence that the seller knew or should have known about the undisclosed defect, the buyer may have legal action for nondisclosures or negligent misrepresentation.
If the owner did not disclose the work (which they are legally obligated to), then you can sue them for misleading real estate practices. Because the unpermitted work wasn't disclosed, the inspector wouldn't know to check for it, would approve the house, and could put you at risk of the repairs break down.
If you bought a home that was built by someone else, you may be able to sue the previous owner and their real estate agent for failing to disclose the mold infestation. You also may be able to sue the property inspector for failing to notice and inform you of the mold.
Just because the ink is dry and the transaction closes, this does not mean that the home seller's relationship with you is done. Instead, they have a legal connection with you in that you can sue them after the home sale if certain things happen, including if you discover they lied about the condition of the home.
A mortgage can't be denied by a lender after closing on a house. However, several issues can arise during the closing process that can put your home purchase in jeopardy. As a home buyer, be prepared to deal with mishaps surrounding the home appraisal and inspection, contingencies and the title.
If you have an inspection that didn't reveal the problem then the homeowner probably didn't know. You can sue anyone at anytime. But winning your case depends on multiple factors and the laws in your area. You should discuss it with an attorney licensed to practice in your area and has experience in real estate laws.
“Hold back” funds.
Maybe the seller agreed to make the repair, but the work couldn't be completed by closing day. Money can be held in escrow to cover the cost. If you're purchasing new construction, you may have funds held in escrow until all work is complete and you've signed off on it.
When buying a home, you can negotiate with the seller to have them pay for the cost of repairs based on the findings from the home inspection report. Depending on your contract, you usually have 5-10 business days to conduct the inspection and request any repairs in writing.
The sellers may be completely unwilling, or even unable, to pay for repairs out of pocket prior to closing. Some types of contractors allow the sellers to pay them after closing from the proceeds of sale, but this is risky for both the contractor and the seller and is generally a last resort.
Testers: They are responsible for finding, reporting, retesting, verifying, and closing defects. They also provide feedback and suggestions on the defect status and resolution. Developers: They are responsible for investigating, fixing, resolving, and reopening defects.
Ordinarily, only home defects that are legally considered "material" and that the buyer didn't know about, but which the seller did at the time of sale, will allow a buyer to recover from the seller. That means, of course, that most defects you might find within a home will not make the seller legally liable to you.
A realtor can sue buyers and sellers. This is typically on account of a breach of contract. It may also occur if they feel that a commission has been withheld.
Short- or Long-Term Capital Gains Taxes
If it's been less than a year since you bought your home, you'll pay short-term capital gains taxes, which are equivalent to your top marginal tax rate. That means if you're in the 22% tax bracket, you'll pay 22% of your gain in taxes.
California is clear about liability laws
This means the buyers have three years to sue you if you failed to fully disclose issues or defects in your home before you sold it.
If a buyer discovers hidden defects or unforeseen issues after closing, they may be able to sue the seller for damages. The specific legal options available will depend on the laws of the state where the property is located and the real estate contract terms.
Seller shall not be liable for any failure to comply with the contract related to any failure to company with the contract related to any circumstances whatever [whether or not involving sellers negligence] which are beyond sellers reasonable control and which prevent or restrict seller from complying with the contract ...