Suing seller for non-disclosure
This is a continued post from another discussion I had on BP which I received much assistance with.
I discovered a property I bought in Las Vegas had $20,000 of plumbing problems which were not disclosed in the SPD. I am now selling the property (obviously with full disclosure of the plumbing problems).
The listing agent I hired has been quite exceptional and impressive. He is passionately insisting I go after the prior owner for compensation.
We do have all the necessary things to warrant compensation. We have proof that the seller knew about the problems and failed to disclose it and the repair cost is substantial. My agent told me that you can go after the seller for 3.5 times the actual cost of repairs.
Has anyone on BP ever successfully sued a seller for lying on SPD?
The seller ticked that plumbing was a known issue and in the comments section wrote
'problem has been fixed'. Evidently the problem was no where near fixed.
I have owned the building for less than 12 months and have encountered 4 sewer back ups during this time which required a plumber call out. The first incident occurred the week after I took ownership of the building. I have recipients which document all of this.
Considering I have had 4 incidences in less than 12 months, it's safe to say that the previous owner had at least 12 similar incidences during the 3 years he owned it.
Upon questioning the tenants who were living in the building at the time I bought it, I've been informed that there were multiple plumbing problems which were severe and ongoing including regular sewage back ups and raw sewage running from the building.
Las Vegas city health department advised me they had multiple dealings with the previous owner and had instructed him to fix the plumbing problem.
It seems undeniable that the owner was fully aware of the existence and severity of the plumbing problems.
If 'the problem has been fixed' as is stated in the SPD, then can we have receipts to show this?
The selling agent was also the property manager for the building. Obviously she would have been aware of the issues from tenant complaints and handling maintenance issues. I've been advised to name the selling agent as another responsible party.
I (stupidly) did not have a professional inspection on the property but this doesn't take away from the fact that the seller outright lied. Everything in the contract seems like a regular sale and it wasn't an REO.
By law apparently both parties must first go to mediation. My agent believes we would stand a good chance of getting sizable compensation to fix the plumbing problems at mediation level, without going to court.
My agent has generously offered to represent me at mediation as I live out of state and the man is on genius level and really knows his stuff. I would be very willing to fly to Las Vegas for the matter also if necessary although my agent is way more knowledgeable and savvy about the whole issue than me.
Any thought and feedback would be appreciated.