Looking for advice - bought a property and roof leaks

Buying & Selling Real Estate
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Looking for advice - bought a property and roof leaks

Jeff Rogers
Investor · Rochester, MN · Member since 2020 · 85 posts · 57 votes

Hey friends,

I recently purchased a property off market and worked directly with the seller to learn about the property and negotiate the deal. They gave a property disclosure statement and stated there were no known roof leaks but in the past there were some and it was remedied with liquid rubber. Lo and behold after I closed on the property, the tenants let me know there is evidence of a leak still existing and it's getting worse as time goes on.  I did have a property inspection but the inspector was unable to get on the roof to inspect.   Do I have any recourse with the seller to get any money back or have them contribute to replacing the roof??

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Bob Okenwa
Real Estate Agent/Investor · Peoria, AZ · Member since 2016 · 2k+ posts · 2k+ votes
3y

@Jeff Rogers

It's on you to do due diligence. Your inspector didn't inspect the roof and that was OK to you. If you were really concerned about it, you would have hired a roofing specialist to check it out and not let that slide.

Fix the roof and keep it moving. Things like this happen. If there is anything that gives you concern going forward, hire the specialist to check it out.

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  • Bob Okenwa
    Real Estate Agent/Investor · Peoria, AZ · Member since 2016 · 2k+ posts · 2k+ votes
    3y

    @Jeff Rogers

    It's on you to do due diligence. Your inspector didn't inspect the roof and that was OK to you. If you were really concerned about it, you would have hired a roofing specialist to check it out and not let that slide.

    Fix the roof and keep it moving. Things like this happen. If there is anything that gives you concern going forward, hire the specialist to check it out.

    3Reply
  • Don KonipolBusiness Member
    Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
    3y
    Quote from @Jeff Rogers:

    Hey friends,

    I recently purchased a property off market and worked directly with the seller to learn about the property and negotiate the deal. They gave a property disclosure statement and stated there were no known roof leaks but in the past there were some and it was remedied with liquid rubber. Lo and behold after I closed on the property, the tenants let me know there is evidence of a leak still existing and it's getting worse as time goes on.  I did have a property inspection but the inspector was unable to get on the roof to inspect.   Do I have any recourse with the seller to get any money back or have them contribute to replacing the roof??

    Real property transaction laws are for the most part state specific, so you’ll probably need legal counsel licensed in the state the property is located in to answer accurately.  In general it will depend on the language of the purchase agreement, as well as any documents executed at closing which modify that agreement.  When I sell a property I will always add a provision that the property is being sold as is, with no warranty implied.  This would of course negate any claim, absence fraud.  In other words, if I signed a property condition statement in which I stated I didn’t know of roof leaks and I actually did know of roof leaks, then I would be liable.
    The difficulty you’ll have is that the seller acknowledged past roof leaks, and even disclosed how they were dealt with.  You would need evidence that he knew that the roof was currently leaking at the time the disclosure was executed. The evidence you have is a tenant’s statement which needs to be more detailed and then examined to see if he has enough knowledge of the situation and if his statement is damaging enough (to a defense) and if he’s willing to provide a written statement or testify, and if his testimony will stand up to cross examination.  A qualified attorney should be able to assess whether you “have a case” and if you do whether it’s financially worth pursuing.

    What’s not in your favor is that you had the opportunity to have the property professionally inspected.  The fact that your inspector didn’t want to climb the roof isn’t a legal excuse.
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  • Marcus Auerbach
    Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes
    3y

    A seller is not a roof expert, they can only disclose what they are aware of, so you have to prove that they knew about it and chose to not disclose..

    Just get it patched, as long as it's only one spot it should be less than what an attorney charges for one hour. However, if you need a whole new roof because it is generally so old that it is failing all over that's a different story, but then, age is not a defect.

    1Reply
  • Jared HottleBusiness Member
    Real Estate Agent · Cedar falls IA Waterloo, IA · Member since 2020 · 902 posts · 549 votes
    3y

    I am not a lawyer but seems tough to prove. If it really bothers you maybe just have a conversation with the seller and see what they think may be fair. Personally, like my area, Duluth is a pretty small market and if you are looking to expand in that market at all, especially off-market deals, being easy to work with is going to be your best long-term option. The synergy or good fortune that comes your way over time will more than pay the leak in the roof. 

    [email protected]319-288-5382
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  • Jeff Rogers
    OP
    Investor · Rochester, MN · Member since 2020 · 85 posts · 57 votes
    3y

    Good points all around and basically validating my thoughts on the legal side.  Good point @Jared Hottle with the market size and relationship side of it. There are a few different layers of relationships with this one and my end goal is to be easy to work with.  Thanks all!

    0Reply
  • Bob S.
    Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
    3y
    Quote from @Jeff Rogers:

    Hey friends,

    I recently purchased a property off market and worked directly with the seller to learn about the property and negotiate the deal. They gave a property disclosure statement and stated there were no known roof leaks but in the past there were some and it was remedied with liquid rubber. Lo and behold after I closed on the property, the tenants let me know there is evidence of a leak still existing and it's getting worse as time goes on.  I did have a property inspection but the inspector was unable to get on the roof to inspect.   Do I have any recourse with the seller to get any money back or have them contribute to replacing the roof??

    Fix the leak and move on.  The cost is meaningless. BTW this is your mistake, you are supposed to check it out. Again, the cost is peanuts, 

    All the best 

    1Reply
  • Galen Ikonomov
    Member since 2021 · 256 posts · 213 votes
    3y

    Nope, you don't. I mean you can go and try to sue for damage and omission, but it would be a waste of time, because how you are going to proof that the seller knew or did not know about the roof leak. That is a lesson for you that you have to do a THOROUGH due diligence and don't trust anyone.

    That sucks man

    1Reply
  • Bob Willis
    Investor · Curtis, NE · Member since 2019 · 231 posts · 140 votes
    3y

    In my experience (and there are people on here with a lot more) the two most important things to know when thinking of buying a property are - how good is the roof, AND, how good is the HVAC. Those are two items that can immediately cost you thou$sand$. Always have those two items vetted by someone who knows what they are doing when looking at a purchase. Good luck.

    1Reply
  • Jeff Rogers
    OP
    Investor · Rochester, MN · Member since 2020 · 85 posts · 57 votes
    3y

    @Galen Ikonomov  Yeah that's my initial thoughts too. Lesson learned - get a better game plan for inspecting roofs for next time!

    @Bob Willis Good point on two critical items. Roofs somehow have come secondary to foundations for me. But lesson learned on this one! Thanks!

    0Reply
  • Tim SwierczekPro Member
    Lender · White Bear Township, MN · Member since 2016 · 1k+ posts · 1k+ votes
    3y
    Quote from @Jeff Rogers:

    Hey friends,

    I recently purchased a property off market and worked directly with the seller to learn about the property and negotiate the deal. They gave a property disclosure statement and stated there were no known roof leaks but in the past there were some and it was remedied with liquid rubber. Lo and behold after I closed on the property, the tenants let me know there is evidence of a leak still existing and it's getting worse as time goes on.  I did have a property inspection but the inspector was unable to get on the roof to inspect.   Do I have any recourse with the seller to get any money back or have them contribute to replacing the roof??


     It's very unlikely you would win. You would need to prove they knew the leak was happening at the time of disclosure and if the tenant had not reported the leak after the last repair, then the seller would not know and have no responsibility.  I doubt its worth your time to pursue it.

    1Reply
  • John G.Pro Member
    Rental Property Investor · Brainerd, MN · Member since 2015 · 72 posts · 42 votes
    3y

    I agree with @Bob Okenwa.  Generally, when looking at off market properties you have more time for due diligence.  A roofer would hop up on the roof and get you an inspection/bid for free.  I would write it up as lesson learned and keep moving forward.  I will admit it sucks though.

    1Reply
  • Bob S.
    Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
    3y
    Quote from @Jeff Rogers:

    Hey friends,

    I recently purchased a property off market and worked directly with the seller to learn about the property and negotiate the deal. They gave a property disclosure statement and stated there were no known roof leaks but in the past there were some and it was remedied with liquid rubber. Lo and behold after I closed on the property, the tenants let me know there is evidence of a leak still existing and it's getting worse as time goes on.  I did have a property inspection but the inspector was unable to get on the roof to inspect.   Do I have any recourse with the seller to get any money back or have them contribute to replacing the roof??

     Just fix it, its not really that big of a deal, welcome to the RE world 
    :)

    BTW this is all on you, YOU should have had one of your team up there, but again do not stress worth it 

    1Reply
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