Question about disclosing foundation issue after it has been addressed.

[Kevin S.]

BP members, I have a dilemma and hoping some of you have answers.

I entered into a contract for a SFH investment property, had inspection done and suspected foundation problem. There was crack in the floor tiles that ran through the kitchen floor and into the hallway. Not hairline crack but a continuous crack probably about 7-8 feet long and wide enough to put a credit card into the crack. There were crack on ceiling above the kitchen and of course few walls too (interior and exterior). Foundation/structural engineer determined a water downspout on one side of the house caused the soil erosion. The foundation settled 7/10 inch on that side of the house. He recommended 2 'pins' to fix the problem at a cost of $6670.00. The selling agent and home inspector tells me it's common and he sees it in 50% home he inspect(central Florida).

Questions I have are,

1.  Is it common and how bad is 7/10 inch settling?  Can it be left alone because it is 'normal/common'?

2.  I believe the seller now has to disclose it to other buyers if I do not buy it?

3.  Am I required to disclose this when I sell in the future after it has been addressed/fixed?

4.  If so, will it spook future buyers even if the foundation has been taken care of?  

5.  Should I just walk away?

Thanks in advance.

[Chris Seveney]

Quote from @Kevin S.:

BP members, I have a dilemma and hoping some of you have answers.

I entered into a contract for a SFH investment property, had inspection done and suspected foundation problem. There was crack in the floor tiles that ran through the kitchen floor and into the hallway. Not hairline crack but a continuous crack probably about 7-8 feet long and wide enough to put a credit card into the crack. There were crack on ceiling above the kitchen and of course few walls too (interior and exterior). Foundation/structural engineer determined a water downspout on one side of the house caused the soil erosion. The foundation settled 7/10 inch on that side of the house. He recommended 2 'pins' to fix the problem at a cost of $6670.00. The selling agent and home inspector tells me it's common and he sees it in 50% home he inspect(central Florida).

Questions I have are,

1.  Is it common and how bad is 7/10 inch settling?  Can it be left alone because it is 'normal/common'?

2.  I believe the seller now has to disclose it to other buyers if I do not buy it?

3.  Am I required to disclose this when I sell in the future after it has been addressed/fixed?

4.  If so, will it spook future buyers even if the foundation has been taken care of?  

5.  Should I just walk away?

Thanks in advance.

1. Settling in florida is normal because of the sandy soils with high ground water. 

2. This is the case, but it is irrelevant to you.

3. Something like this I would disclose. I would keep the name of the company and receipt for work and get a warranty from them.

4. It depends on the buyer, it would not spook me but it may spook someone else. People will come up with every excuse why to either buy or not buy a home.

5. Cannot tell you one way or other to walk away, but this would not be something that causes me to walk away. There was an issue, they determined what caused it and it can be repaired. If they refuse to pay for the fix then I would walk away. 

Just my 2 cents. hope this helps