What if I Discover Serious Issues in a House I Bought?

Kapil Patel, Attorney at Parikh Law Group

Buying a home in Illinois is one of the most significant investments many people make. The excitement of moving into a new place can quickly fade if you discover serious issues with the house that weren’t disclosed during the sale.  In such cases, homeowners may wonder what their legal options are. Fortunately, there are remedies available to help you address these concerns.

If you’re facing unexpected home repairs due to undisclosed defects, it’s essential to understand your rights. The real estate attorneys at Parikh Law Group, LLC are here to provide the guidance you need. 

Is the Seller Liable for Undisclosed Defects?

One of the first questions many homeowners ask is whether the seller is liable for undisclosed defects. In Illinois, sellers are required by law to disclose any known defects in the property before the sale. This is usually done through a real estate disclosure form, where the seller must provide information on the condition of the home’s major systems, such as the roof, foundation, heating, and plumbing. Not every minor inconvenience rises to the level of a serious issue. However, problems that impact the home’s safety, habitability, or value can be considered major concerns. These might include:

• Structural defects: Cracks in the foundation, uneven floors, or roof leaks.

• Plumbing problems: Leaky pipes, faulty sewage systems, or malfunctioning septic tanks.

• Electrical hazards: Faulty wiring, overloaded circuits, or outdated electrical panels.

• Hidden damage: Mold infestation, asbestos contamination, or significant water damage.

• Major appliance malfunctions: Issues with the heating and cooling systems, water heater, or major kitchen appliances (if included in the sale).

If a seller knowingly conceals or fails to disclose serious defects, they may be held liable under Illinois real estate law. However, not every issue qualifies as a failure to disclose. For example, if the defect was obvious or should have been discovered through a reasonable inspection, the seller may not be liable. This is where real estate attorney can help you assess whether you have a viable claim. 

What If the Inspector Missed Something?

Most homebuyers wisely include a home inspection contingency in their purchase agreement. This allows you to hire a professional inspector to assess the condition of the property before the sale is finalized. But what happens if the inspector missed a significant issue, such as mold, foundation cracks, or faulty wiring? 

In some cases, the inspector can be held liable for negligence if they failed to perform a thorough inspection. However, liability often depends on the terms of your inspection agreement, as many contracts limit the inspector’s responsibility to certain types of issues. If a defect was obvious or discoverable through reasonable diligence and the inspector failed to notice it, you may have grounds for a legal claim.

Legal Remedies for Homebuyers

If you discover serious issues with your home after the purchase, several legal remedies may be available. Some of the most common options include:

• Breach of Contract: If the seller failed to disclose a known defect or breached the terms of the sale contract, you might be able to file a lawsuit for breach of contract. This could result in financial compensation to cover the cost of repairs or even the cancellation of the sale.

• Fraud: If you can prove that the seller intentionally concealed defects, you may have a fraud claim. This can be more challenging to prove, but the consequences for the seller are more severe, potentially leading to punitive damages.

• Negligence: If a home inspector or real estate agent failed to properly perform their duties, they may be liable for negligence. This can include missing critical issues during the inspection or providing misleading information about the property.

• Rescission of the Sale: In extreme cases, you may be able to rescind the sale entirely, which means canceling the transaction and returning both parties to their pre-sale positions. This is a rare remedy, typically reserved for cases of severe fraud or misrepresentation.

If you’re unsure which legal remedy applies to your situation, a consultation with an attorney specialized in real estate matters can help clarify your options. Attorneys will review your purchase agreement, home inspection report, and any other relevant documents to determine the best course of action.

Steps to Take If You Discover Serious Issues

If you’ve discovered serious issues in your newly purchased home, it’s essential to take prompt action. Here are the steps you should follow:

• Document the Issues: Take photos, videos, and notes on the problems you’ve discovered. Gather any receipts or estimates for repair costs. The more documentation you have, the stronger your case will be.

• Review the Disclosure Form: Check the seller’s real estate disclosure form to see if the issue was mentioned. If it wasn’t, this could be a critical piece of evidence in your case.

• Contact a Real Estate Attorney: Before attempting to resolve the issue with the seller or other parties, consult with a knowledgeable lawyer who can help you understand your rights and avoid costly mistakes.

• File a Claim: Depending on your case, your attorney may recommend filing a claim against the seller, the inspector, or any other responsible party. This can result in compensation for repairs, or in extreme cases, a rescission of the sale.

House Hunting Nightmare? We Can Help

Discovering significant issues in a home after purchasing it can be overwhelming, but you don’t have to face this situation alone. Whether the seller failed to disclose critical defects, or your inspector missed something important, our real estate attorneys can help you explore your legal options. We can assist with breach of contract claims, fraud cases, and negligence actions, ensuring that your rights are protected every step of the way. www.plgfirm.com