Bought a House, Later Found Potentially Hidden Foundation Issues — Need Advice

Oklahoma City, Oklahoma
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Bought a House, Later Found Potentially Hidden Foundation Issues — Need Advice

Harsh Patel
Member since 2025 · 50 posts · 12 votes

Hi everyone,I’m looking for guidance from experienced investors because I’m dealing with a situation I didn’t anticipate.I recently purchased a rental property in Moore, OK. I completed full due diligence—home inspection + foundation inspection, both recommended by my buyer’s agent. The foundation inspector stated that the foundation “appears sound.”After closing, a neighbor informed me of troubling details:

  • The previous tenant had water intrusion issues near the windows during rain.
  • The tenant reportedly requested repairs multiple times. Owner didn't fix the issue.
  • Tenant eventually hired a structural engineer to document the foundation problem so they can force the owner to fix the issue.
  • Instead of addressing the issue, the owner (an LLC) non-renewed/kicked out the tenant and immediately listed the house for sale.
  • Yet in the Seller’s Disclosure, the seller checked “No” regarding any knowledge of foundation issues.

This information led me to hire a second foundation company for an independent assessment. Their findings:

  • There is 0.5" to 2" of foundation movement at the back side of the house. (I am attaching a diagram where the settlement is required)
  • Recommended repair: 12 push piers, estimated at $16,000.

Because of this, I reached out to the seller (via their agent) and asked a very direct question: “Were you aware of any foundation issues during the time you owned the property?”But they keep avoiding the question and instead reply with: “We are not aware of any previous foundation work.” —which is not what I’m asking.Had I known about these issues, I would have negotiated the price further or possibly walked away.Considering long-term impacts:If I decide to keep the property and repair it, the foundation company is offering a 75-year transferable warranty. I’m wondering:

  • Will having a repaired foundation harm the resale value?
  • Or will the transferable warranty actually make future buyers comfortable?

I bought this property because I negotiated a good price. Even after spending $16k on repairs, the total cost would still be below fair market value compared to similar homes in the area. So part of me still wants to keep it as a long-term rental (based on my assumption by nearby sells).What I’m trying to figure out:Given everything above, I’m unsure how to proceed this situation. Should I:

  • Accept the situation and treat the repair cost as part of the investment?
  • Pursue action against the seller/LLC for failure to disclose under Oklahoma law? I am not sure how can I prove this legally when the seller keeps saying they aren't aware of any foundation issue.
  • Or something else entirely?

Has anyone dealt with similar foundation disclosure issues before? What was the outcome, and what would you do if you were in my position?

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Greg ScottPro Member
Rental Property Investor · SE Michigan · Member since 2014 · 4k+ posts · 6k+ votes
9mo

Here is what I would do in your situation.

1) Fix the foundation.  Other than the cash spent, there is no downside to solving the problem. I've bought and sold many TX properties with foundation work.

2) I would pursue recourse against both the seller, but know the odds of collecting anything meaningful are small. Find out all you can about this LLC. If they have other assets, you might have a shot. Many LLCs have only one property as an asset and once the asset is sold, the LLC is effectively defunct. You would spend way more than $16,000 pursuing them in court so the likelihood of a positive outcome is minimal. If they have assets, it is worth paying an attorney to write a tersely worded letter implying a lawsuit might happen unless they settle.

3) Did your first foundation company provide a similar map to what you attached?  This is fairly normal.  Typically any foundation variance of more than 1 inch over 20 feet is considered out of normal.  You might want to talk to the same attorney about this.  You might be able to hit their insurance company.  Odds are the best you might do here is a refund of the costs you spent on the inspection.

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  • Greg ScottPro Member
    Rental Property Investor · SE Michigan · Member since 2014 · 4k+ posts · 6k+ votes
    9mo

    Here is what I would do in your situation.

    1) Fix the foundation.  Other than the cash spent, there is no downside to solving the problem. I've bought and sold many TX properties with foundation work.

    2) I would pursue recourse against both the seller, but know the odds of collecting anything meaningful are small. Find out all you can about this LLC. If they have other assets, you might have a shot. Many LLCs have only one property as an asset and once the asset is sold, the LLC is effectively defunct. You would spend way more than $16,000 pursuing them in court so the likelihood of a positive outcome is minimal. If they have assets, it is worth paying an attorney to write a tersely worded letter implying a lawsuit might happen unless they settle.

    3) Did your first foundation company provide a similar map to what you attached?  This is fairly normal.  Typically any foundation variance of more than 1 inch over 20 feet is considered out of normal.  You might want to talk to the same attorney about this.  You might be able to hit their insurance company.  Odds are the best you might do here is a refund of the costs you spent on the inspection.

    3Reply
    • Harsh Patel
      OP
      Member since 2025 · 50 posts · 12 votes
      9mo

      @Greg Scott Thank you for taking the time and responding.

      No, first foundation company didn't provide any kind of map. 

      0Reply
  • Rhett TullisBusiness Member
    Property Manager · Oklahoma City, OK · Member since 2013 · 1k+ posts · 617 votes
    9mo

    I would say 90% of the homes in oklahoma have some sort of foundation issue or soon will.  This is very common and not a big turn off to most locals that know the issues here.  The soil here can be very unstable at times.  

    It would be difficult to prove that the seller had knowledge of the issue.  You can certainly pursue them but winning is another matter and what attorney will do it?  If you have to put them on retainer you may risk more than you spend on the piers to fix the issue.  Third hand knowledge from a neighbor that heard from a tenant that claims that they told the owner will not go very far in a hearing I would imagine.

    If the home is concrete slab I would highly doubt that a window leak would cause the foundation issue, if a post and beam maybe? (again see above foundation issues are extremely common in OKC and most of oklahoma)

    I would get another estimate on the foundation repairs.  There are several companies in town that are around $750 per pier so pricing seems a bit high based on my experience.  

    [email protected]405-283-6522
    Integrity Oklahoma
    WebsiteView Page
    1Reply
    • Harsh Patel
      OP
      Member since 2025 · 50 posts · 12 votes
      9mo

      @Rhett Tullis 

      Thank you, Rhett. I agree—without solid evidence, the hearing won’t lead anywhere.

      Just to clarify, the window leak itself didn’t cause the foundation problem. The tenant had reported a leak, but the owner never addressed it. Because of that, the tenant hired an engineer to document that the leak was actually a symptom of an underlying foundation issue.

      I would really appreciate any recommendations you may have for trustworthy foundation repair companies. I can certainly gather multiple quotes on my own, but I’m nervous about choosing someone without a reliable reference.

      Also, do you have any insight into how soon the foundation should be repaired? I don’t have experience with these issues, and I’m trying to understand whether the work needs to be done immediately or if it’s reasonable to wait a year or two. I’ve already addressed the exposed piers so that water can’t get around them and soften the surrounding soil, but I’m unsure whether that buys me any meaningful time.

      0Reply
    • Rhett TullisBusiness Member
      Property Manager · Oklahoma City, OK · Member since 2013 · 1k+ posts · 617 votes
      9mo

      Quote from @Harsh Patel:

      @Rhett Tullis 

      Thank you, Rhett. I agree—without solid evidence, the hearing won’t lead anywhere.

      Just to clarify, the window leak itself didn’t cause the foundation problem. The tenant had reported a leak, but the owner never addressed it. Because of that, the tenant hired an engineer to document that the leak was actually a symptom of an underlying foundation issue.

      I would really appreciate any recommendations you may have for trustworthy foundation repair companies. I can certainly gather multiple quotes on my own, but I’m nervous about choosing someone without a reliable reference.

      Also, do you have any insight into how soon the foundation should be repaired? I don’t have experience with these issues, and I’m trying to understand whether the work needs to be done immediately or if it’s reasonable to wait a year or two. I’ve already addressed the exposed piers so that water can’t get around them and soften the surrounding soil, but I’m unsure whether that buys me any meaningful time.


       Reach out to Triton foundation we work with them often they should be able to help.  The window claim seems a bit iffy to me.  I can't think of many residents willing to spend the approx $600 out of their own pocket that it would cost for an engineer to check a leak on a house that they do not own.  Most would just break the lease and move on or have a handyman come and look things over but an engineer seems a bit extreme for a water leak.

      [email protected]405-283-6522
      Integrity Oklahoma
      WebsiteView Page
      2Reply
    • Dan H.Pro Member
      Investor · Poway, CA · Member since 2015 · 7k+ posts · 8k+ votes
      9mo
      Quote from @Harsh Patel:

      @Rhett Tullis 

      Thank you, Rhett. I agree—without solid evidence, the hearing won’t lead anywhere.

      Just to clarify, the window leak itself didn’t cause the foundation problem. The tenant had reported a leak, but the owner never addressed it. Because of that, the tenant hired an engineer to document that the leak was actually a symptom of an underlying foundation issue.

      I would really appreciate any recommendations you may have for trustworthy foundation repair companies. I can certainly gather multiple quotes on my own, but I’m nervous about choosing someone without a reliable reference.

      Also, do you have any insight into how soon the foundation should be repaired? I don’t have experience with these issues, and I’m trying to understand whether the work needs to be done immediately or if it’s reasonable to wait a year or two. I’ve already addressed the exposed piers so that water can’t get around them and soften the surrounding soil, but I’m unsure whether that buys me any meaningful time.

      Not a lawyer.  Consult a qualified lawyer.

       >tenant hired an engineer to document that the leak was actually a symptom of an underlying foundation issue

      Can you get a copy of that document? If you can, you have a solid case but collecting is a different matter. If the LLC only consisted of the one property then it likely has nothing to go after at this point. Maybe the proceeds from the sale can be traced to their destination, but this is an additional challenge.

      Good luck

      2Reply
    • Harsh Patel
      OP
      Member since 2025 · 50 posts · 12 votes
      9mo

      @Rhett Tullis Yeah. At the best, I can just assume why they would have done that until I get in touch with them. Thank you for the recommendation. I will reach out to them today.

      0Reply
    • Harsh Patel
      OP
      Member since 2025 · 50 posts · 12 votes
      9mo

      @Dan H. Thank you. I had a conference call with seller today and they are willing to pay for the repairs. Also, it turned out to be a big LLC owning multiple properties across many states.

      1Reply
  • Jeff Filali
    Rental Property Investor · Broken Arrow, OK · Member since 2016 · 1k+ posts · 1k+ votes
    9mo

    Almost every home in Oklahoma has or will have foundation issues.  Fixing it will not affect thr resell value at all, but not fixing it will reduce the resell value and make it harder to sell.  I buy properties all the time with similar issues and always get foundation bid pre-closing.  You should definitely seek legal recourse if you have the documentation to prove the seller knew.  Good luck! 

    2Reply
    • Harsh Patel
      OP
      Member since 2025 · 50 posts · 12 votes
      9mo

      @Jeff Filali thank you. I am going to fix the foundation repair. Seller agreed on paying the cost for the repairs.

      0Reply
    • Rhett TullisBusiness Member
      Property Manager · Oklahoma City, OK · Member since 2013 · 1k+ posts · 617 votes
      9mo
      Quote from @Harsh Patel:

      @Jeff Filali thank you. I am going to fix the foundation repair. Seller agreed on paying the cost for the repairs.


       wow that is awesome,  certainly not the norm in what i have seen but nice to see someone take care of things like that.

      [email protected]405-283-6522
      Integrity Oklahoma
      WebsiteView Page
      1Reply
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