Ordinarily, only home defects that are 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.
If the seller does not reveal a latent condition on their property, they will be liable for the reasonable cost incurred by the buyers to correct that condition. Depending on the situation, this may cost tens of thousands of dollars. That’s why I always advise clients to be upfront and honest with the buyer.
Can a seller be liable for a defect on a house?
A defect on the list of potential defects is not disclosed. The buyer can prove the seller knew or should have known about the defect. However, when the inspector is found liable, they might only be on the hook for the cost of the home inspection report (as opposed to the cost of the defect).
Do you have to disclose Bad Neighbours when selling a house?
So, if you are asking, ‘Do you have to disclose bad neighbours when selling a house?’ then yes, you do. If you are having a long-running feud or dispute with one of your neighbours then you need to say so. If you have cracks appearing in the walls faster than they can be filled in, then this must be disclosed too.
Why is owning a house considered a liability?
There are mundane aspects of home ownership that make a house a significant liability. Taxes, maintenance, and mortgage interest all diminish the value of this “investment”. But there are far more dramatic ways that things can go wrong.
Can a house be a liability if it burns down?
That is, of course, unless it burns down, blows up, washes away, rots, falls to pieces, or is condemned. There are mundane aspects of home ownership that make a house a significant liability. Taxes, maintenance, and mortgage interest all diminish the value of this “investment”. But there are far more dramatic ways that things can go wrong.
