# Real Estate post selling issue.



## supreme (Aug 7, 2012)

We recently sold a house with no problems of a leaky basement. After a month later the buyer is telling us that the basement is leaking and says we have to fix it. We sold the house back in June its now August. The buyer also did not want to inspect the house when they purchased it (which was part of the contract). Now my question is, is there anyways we are liable for this? To me it sounds ridiculous. Any input is welcome. Thank you.


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## Chris L (Nov 16, 2011)

I think they'd have to prove that you intentionally deceived them about a leaky basement when they asked about it. Did any of that happen?


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## balexis (Apr 4, 2009)

The first thing I would do is to go in person and assess the situation. The basement _may_ have been leaking for a while and you did not notice it, or what they qualify as a leak may just be regular condensation. Take a lot of pictures. Take notes on everything the new homeowners have to say, especially if they say they made some landscaping or other major work around the problematic areas.

I don't know if the hidden defect regulations differ from province to province, but this is a good starting point for information in Quebec:
http://www.educaloi.qc.ca/en/loi/owners/105/


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## crazyjackcsa (Aug 8, 2010)

It isn't your house anymore, you shouldn't go back into it for any reason. Tell them there was no leak you were aware of. Any further communication should be done through a lawyer.

They skipped the inspection, you were not aware of a leak. End of story.


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## Four Pillars (Apr 5, 2009)

crazyjackcsa said:


> It isn't your house anymore, you shouldn't go back into it for any reason. Tell them there was no leak you were aware of. Any further communication should be done through a lawyer.
> 
> They skipped the inspection, you were not aware of a leak. End of story.


Ditto. Just ignore them and whatever you do - don't go back to the house.


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## marina628 (Dec 14, 2010)

I had this happen to move in 2001 ,the buyer gutted our finished basement as soon as he moved in and about a month later there was leaking.They had home inspection and house was fine ,we lived there 9 years no issue as well.Turned out when doing the basement they put some nails in that cause a leak around window.All we did is have our lawyer call the buyer's lawyer.


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## balexis (Apr 4, 2009)

supreme: weird advice being given here about not going there yourself, or at least not sending your own expert. Contact an appropriate lawyer ASAP and follow his advice, this is way outside the competence of this money forum.


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## Cal (Jun 17, 2009)

My 2c worth. They bought w no home inspector. Thats on them. And unless they contact you via lawyer, with evidence that you knowingly sold the home completely aware of the condition. Only then would I be concerned enough to contact a lawyer, hire my own home inspector and such. Until then, sleep well.


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## MoneyGal (Apr 24, 2009)

Here is a brief guide to the problem of leaky basements post-sale, written by a lawyer, which may be helpful: 

http://www.ontariorealestatesource.com/images/ProtectingBuyersandSellersfromLeakyBasements.pdf

Excerpt:

The real estate principles of “latent” and “patent” defects apply and assist the Courts in determining liability. A latent defect is “some fault which one would not expect an ordinary purchaser to discover during a routine inspection” and patent defect is “something which an unsophisticated purchaser can discover on cursory inspection”.

Was the crack in the basement wall [causing a leaky basement in this example] a latent (hidden) defect or a patent (easily
seen) defect? How easily could the leak have been discovered?

If it is determined to be a patent defect (easily seen), the rule “let the buyer beware” applies, and Fred and Wilma [the buyers] are out of luck. And, it doesn’t really matter whether John and Mary [the sellers] knew about it. There is no recourse against John and
Mary.

However, if it were a latent (hidden) defect and John and Mary did not know about it, there is still no recourse. The rule “let the buyer beware” applies. But, if the John and Mary knew about such a defect and didn’t disclose it to Fred and Wilma, then, they are liable for the damages. *A latent defect known to the vendor must be disclosed to a purchaser.*


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## Sampson (Apr 3, 2009)

MoneyGal said:


> *A latent defect known to the vendor must be disclosed to a purchaser.*


I'm guessing this is near impossible to tell unless there is some form of record showing the seller had inspected and found a problem, but did not disclose.


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## MoneyGal (Apr 24, 2009)

Pretty much. People can lie. But still, there's the law; for what it is worth.


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## sags (May 15, 2010)

Leaky basements usually leave telltale marks on unfinished walls.....or on the bottom of drywall or panelling. Carpets and underlay also have telltale signs.

It wouldn't be that difficult to tell if the homeowner was aware of the leaking or not.


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## MoneyGal (Apr 24, 2009)

This is the "patent defect" argument...if evidence of a leaky basement is readily found (or could have been readily found), and the buyer did not get an inspection or do their own inspection, they are SOL. If it is a "latent defect" (not readily detectable), that's when you need to prove the seller knew about the defect in order to have a claim.


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## Berubeland (Sep 6, 2009)

For instance if you hired a contractor to replace the moldy drywall before selling. That is a good example.


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## kcowan (Jul 1, 2010)

I bought a house in London and we had some flooring replaced because it had water damage. In the spring, we discovered that wind had created an ice berm that directed runoff water against the fireplace wall. I would just chip an exit in the ice berm for the water to escape and never had a problem.

Officially this was a latent problem but we never had a problem as long as we just chopped through the ice once each spring.


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