found previous claims for a purchasing home

I am about to purchase a house in 2 weeks. My lender requested that I need to have HOI for the house we are buying, so I went HOI Agent and found out there are 2 previous claims back in 2009 one was about $5k. So My Realtor agent contacted the seller and the seller said not aware of any claims.
Question is how can I make this seller to admit there were 2 claims. Can I sue this seller over false seller disclosure? the seller has been always denying until I prove something since beginning. I like the house, but not the seller. I really don't want to get in without knowing what exactly happened.

Carlos F.

Real Estate Investor · Dallas, Texas

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Nov 08 '11, 09:46 AM

I have not run one, but you might want to try a CLUE report http://www.lexisnexis.com/risk/solutions/clue-home-seller.aspx

Jon Holdman

Real Estate Investor · Wheat Ridge, Colorado

Moderator Pro

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Nov 08 '11, 10:20 AM

Why are you beating your head against the wall to get the seller to admit there were claims? The insurance companies already have the records in the CLUE system Carlos mentions. Ask you insurance agent what the claims were for.

If you like the house and like the deal you're getting don't get wrapped up in disliking the seller. OTOH, if you feel like the seller is trying to defraud you, move on to another house.

Jon Holdman, Flying Phoenix LLC

Dave T

Real Estate Investor · South Carolina

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Nov 11 '11, 11:20 AM

Isn't it really irrelevant? Any insurance claims for damages to the property were settled when the property was restored to full operating condition.

Seller dislosure tells you about any defects with the property that you may not be able to see. Any temporary problems that were rectified and no longer exist are not defects that need to be disclosed. This is one reason why you have a professional home inspection. A home inspector can often identify potential problems that may not be visible to the untrained observer.

Remember that homeowners insurance usually covers more than just the homesite. It also covers personal property. Maybe the claims were for personal property loss or theft and not for damage to the structure at all.

Before you make this a big deal and potentially lose your earnest money deposit, have a conversation with your real estate agent.

Steve Babiak

Real Estate Investor · Audubon, Pennsylvania

4,267 posts
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Nov 11 '11, 12:33 PM

Originally posted by Dave T

Isn't it really irrelevant? Any insurance claims for damages to the property were settled when the property was restored to full operating condition.

...

Not always. The claims history of the property can affect the future premiums paid to insure the property, regardless of what type of claims they were. The insurers see the previous claims as potential future risks with that property. That is part of the reason why the insurance companies use the CLUE system.

Dave T

Real Estate Investor · South Carolina

434 posts
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Nov 11 '11, 11:20 PM

Steve,

The original poster says that s/he is concerned about what the seller is not disclosing because there were previous claims and is even asking about suing for a false disclosure. I am saying that the previous claims and the reason for the claims are not required disclosures if the problems were corrected.

Yes, prior claims may affect the insurance premium for the next year ot two, but the existance of a prior insurance claim is irrelevant in the context of a seller disclosure.

If this is going to be too much of a concern for Young S, then he/she should move on to another property.