Get out of the leaky tub

No one has to tell you but buying a home is very expensive. For you apply for the mortgage, which is a process in itself, all the while you keep racking up the expenses; agent fees, closing costs, PMI (private mortgage insurance), home owners insurance, association fees and etc.

So, you spend basically every penny you own, but you now have your dream home.

Everything was processed on Monday. On Tuesday, you try to settle in your new home by taking a bath and what do you find; a leaky tub.

Realty times columnist, Stuart Lieberman explains how this is not an uncommon incident, in his August 31, 2006 article, “ Disclosure and Saving for a Rainy Day.”

There are two problems associated with this leaky tub; it was unexpected and the seller probably knew about it.

“For some reason, upstairs bathtubs seem to be a common villain. But plumbing leaks of all types, as well as mold conditions and leaking roofs are certainly high up there. What I'm talking about are problems of which the seller knew of before the closing, but which were hidden from the purchaser. Perhaps negligently concealed, perhaps intentionally concealed.”

“Sheetrock will have to be torn off, a plumber will have to investigate and identify the source, plumbing will have to be put into place, and then the entire area will have to be restored.”

This will probably cost thousands of dollars to repair. Even though this is a terribly expensive ordeal, the main problem is how this happened.

A $5,000 repair would affect any homeowner, but having to fork over that kind of money just days after spending your lifesavings could damage your financial life. You were not expecting it, but maybe you should.

So, do you have any legal rights concerning this issue?

“Of course, the first place to begin this inquiry is an evaluation of the contract and of local state law concerning issues of misrepresentation. Presumably, the contract provides that the purchaser had a reasonable opportunity to conduct an inspection of the home. And further that the purchaser is accepting the home in as is, where is condition.”

As is or where is condition mean that the purchaser is indeed buying the house at its existing condition. This usually waives liability rights for the seller.

“Usually, but not always. Where a defect is difficult for the purchaser to find prior to closing, and where the defect was intentionally hidden by the seller, the seller may have legal exposure.”

You will need to hire a lawyer to conduct this case. The common rebuttal by defense is if it can be determined that the purchaser had every opportunity and right to notice the leaky tub through a thorough inspection.

“If the defect is considered to be ‘latent,’ in other words, one that is not reasonably discernible through a proper home inspection, then there is a possibility that the seller will be liable to the purchaser for costs associated with the repair. A local lawyer who understands real estate law in your jurisdiction will help you determine the extent of your rights, if any.”

Regardless of the outcome, nobody wants to go though a lawyer just after buying a home, or any time.

So, to prevent this, hire an established home inspector (it is your responsibility) and get everything in writing. This will protect you as much as possible from the infamous leaky tub.

Besides that, you should always have an emergency fund, especially after buying a home because any thing can happen at any time.

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