Property owner lied about having a basement

Property owner lied about having a basement

Member since 2022 · 35 posts · 9 votes

Hello BP,

I recently purchased a property in an area that has flood issues. When I bought the property I was told by the seller that there was no basement and the property never flooded. Based on this information I felt comfortable buying the property. However through doing renovations we discovered that there indeed was a basement. We found out that the previous owner filled the basement with dirt and anything else he could find because the basement use to flood. 

Through out the entire house buying process he told all of us there is no basement. 

This has caused structural issues to the property because the first floor apartment is sinking and I feel it is related to what he did to the basement. 

On all of the paperwork there is no mention of a basement he purposely sealed the basement and lied to everyone about the property flooding and the basement. The inspection report has no report of a basement because we did not know it existed.


Knowing what I know now, what can I do?

1Reply
41 views

Most Popular Reply

Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
1y

wow..  this one might be a cause for litigation.. Not sure if they will counter that a decent home inspection would have uncovered this so its your fault.

See this reply in the discussion

15 Replies

Jump to latestLatest
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    1y

    wow..  this one might be a cause for litigation.. Not sure if they will counter that a decent home inspection would have uncovered this so its your fault.

  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    1y

    Do you know for sure that the previous owner is the one who had the basement filled in.  Why did the inspection not detect it?  Similar to what Jay said would they not have noticed that the foundation wasn't right because it was in fact the top of a basement?

    How much to jack the house up and pour a new slab foundation?

    • Member since 2022 · 35 posts · 9 votes
      1y
      Quote from @Theresa Harris:

      Do you know for sure that the previous owner is the one who had the basement filled in.  Why did the inspection not detect it?  Similar to what Jay said would they not have noticed that the foundation wasn't right because it was in fact the top of a basement?

      How much to jack the house up and pour a new slab foundation?

      Yes I know for sure the previous owner filled the basement and lied it ever existed. 

      The former entry point to the basement is sealed and the owner did a good job of hiding it ever existed. Except the boiler room was moved to the first entry room of the first floor and architecturally didn’t make sense. 
    • Chris SeveneyBusiness Member
      Moderator
      Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
      1y
      Quote from @M Edouard:
      Quote from @Theresa Harris:

      Do you know for sure that the previous owner is the one who had the basement filled in.  Why did the inspection not detect it?  Similar to what Jay said would they not have noticed that the foundation wasn't right because it was in fact the top of a basement?

      How much to jack the house up and pour a new slab foundation?

      Yes I know for sure the previous owner filled the basement and lied it ever existed. 

      The former entry point to the basement is sealed and the owner did a good job of hiding it ever existed. Except the boiler room was moved to the first entry room of the first floor and architecturally didn’t make sense. 

       so if you fill in a basement is there really a basement? Never heard this one before. But i do not see why filling in a basement would cause the first floor to sink or structural issues. 

      Have you had an engineer review this?

      7e investments53 Reviews
    • Member since 2022 · 35 posts · 9 votes
      1y
      Quote from @Chris Seveney:
      Quote from @M Edouard:
      Quote from @Theresa Harris:

      Do you know for sure that the previous owner is the one who had the basement filled in.  Why did the inspection not detect it?  Similar to what Jay said would they not have noticed that the foundation wasn't right because it was in fact the top of a basement?

      How much to jack the house up and pour a new slab foundation?

      Yes I know for sure the previous owner filled the basement and lied it ever existed. 

      The former entry point to the basement is sealed and the owner did a good job of hiding it ever existed. Except the boiler room was moved to the first entry room of the first floor and architecturally didn’t make sense. 

       so if you fill in a basement is there really a basement? Never heard this one before. But i do not see why filling in a basement would cause the first floor to sink or structural issues. 

      Have you had an engineer review this?

      Not yet I just uncovered this information 
  • Jared W SmithBusiness Member
    Architect · Westchester County, NY · Member since 2018 · 681 posts · 476 votes
    1y

    Wow. I would definitely check with your attorney on this one and the possibly the insurance for the inspector if they were at fault for not seeing this. Depending on how it was filled, there would be tell tale indicators. Especially based on the age of the structure and typical SFH foundations throughout NYC. Few will be slab on grade with no type of basement, cellar or crawlspace.

    Is this located in NYC? What did the CO say? Unless legally removed, a basement/cellar would be noted on the CO. @M Edouard

    Architect Owl PLLC521 Reviews
    • Member since 2022 · 35 posts · 9 votes
      1y
      Quote from @Jared W Smith:

      Wow. I would definitely check with your attorney on this one and the possibly the insurance for the inspector if they were at fault for not seeing this. Depending on how it was filled, there would be tell tale indicators. Especially based on the age of the structure and typical SFH foundations throughout NYC. Few will be slab on grade with no type of basement, cellar or crawlspace.

      Is this located in NYC? What did the CO say? Unless legally removed, a basement/cellar would be noted on the CO. @M Edouard

      There is no CO the building was built before 1938. It is a 4 family located in Queens, NY. 

      My contractor has been saying from day 1 this property has a basement but 2 licensed inspectors couldn't discover this smh. 

  • Jared W SmithBusiness Member
    Architect · Westchester County, NY · Member since 2018 · 681 posts · 476 votes
    1y

    Oh boy. Sorry to hear of this issue. I would sided with the Contractor here. That building type and year of construction would have, 99% of the time, had a cellar/basement.

    Architect Owl PLLC521 Reviews
    • Member since 2022 · 35 posts · 9 votes
      1y
      Quote from @Jared W Smith:

      Oh boy. Sorry to hear of this issue. I would sided with the Contractor here. That building type and year of construction would have, 99% of the time, had a cellar/basement.


      Yeah he really tricked us. Even online the property is listed on the MLS as no basement. All the documents no basement is listed. This is my first property and I'm seeing the shadiness and greed in people. My lawyers are currently reviewing the disclosures and paperwork to see how to advise me.

  • Mackaylee BeachPro Member
    Real Estate Agent · Kansas City, MO · Member since 2020 · 1k+ posts · 492 votes
    1y

    It sounds like you're in a challenging situation, but there are steps you can take to address this issue. First, consult with a real estate attorney to explore your legal options. They can help determine if you have a case for misrepresentation or fraud against the seller, especially since the omission of the basement and its condition was not disclosed.

    Additionally, you might want to consider hiring a structural engineer to assess the damage and provide a detailed report. This will not only help you understand the extent of the damage but also serve as evidence in any legal proceedings or negotiations with the seller.

    Document everything thoroughly, including communications with the seller and any professionals involved in the inspection and renovation process. This documentation will be crucial if you decide to pursue legal action.

    Lastly, reach out to your homeowner's insurance company to discuss the situation. While most policies do not cover pre-existing conditions, they may offer some guidance or support in terms of potential coverage or next steps.

    Addressing these issues promptly can help prevent further damage to your property and safeguard your investment.

    • Member since 2022 · 35 posts · 9 votes
      1y
      Quote from @Mackaylee Beach:

      It sounds like you're in a challenging situation, but there are steps you can take to address this issue. First, consult with a real estate attorney to explore your legal options. They can help determine if you have a case for misrepresentation or fraud against the seller, especially since the omission of the basement and its condition was not disclosed.

      Additionally, you might want to consider hiring a structural engineer to assess the damage and provide a detailed report. This will not only help you understand the extent of the damage but also serve as evidence in any legal proceedings or negotiations with the seller.

      Document everything thoroughly, including communications with the seller and any professionals involved in the inspection and renovation process. This documentation will be crucial if you decide to pursue legal action.

      Lastly, reach out to your homeowner's insurance company to discuss the situation. While most policies do not cover pre-existing conditions, they may offer some guidance or support in terms of potential coverage or next steps.

      Addressing these issues promptly can help prevent further damage to your property and safeguard your investment.


       Thank you! 

  • Real Estate Broker · New York, NY · Member since 2020 · 2k+ posts · 1k+ votes
    1y

    How does one order 2 separate inspections and miss a potential basement? @M Edouard

    I feel like there's a lot of missing context here that could be useful. 

    If I'm representing a seller, and the buyer already does 1 inspection - and comes back to ask for a 2nd follow up inspection... its up to the seller's discretion if they want to allow it at all. In this scenario, assuming the seller was ok with you to order a separate 2nd inspection for your own peace of mind which didn't uncover anything. 

    If the sale was "as-is" after multiple inspections, you may not have much strong footing to stand on - just FYI. 

    Not wanting to sound negative, but I'm still so confused how multiple inspections ordered by the buyer (and allowed by the seller) could miss a hidden basement - and how could a seller that allowed multiple follow up inspections be indicative of them trying to hide something? 

    Again, more context would be useful to know the full picture its just very confusing how we got here.

    • Member since 2022 · 35 posts · 9 votes
      1y
      Quote from @Mohammed Rahman:

      How does one order 2 separate inspections and miss a potential basement? @M Edouard

      I feel like there's a lot of missing context here that could be useful. 

      If I'm representing a seller, and the buyer already does 1 inspection - and comes back to ask for a 2nd follow up inspection... its up to the seller's discretion if they want to allow it at all. In this scenario, assuming the seller was ok with you to order a separate 2nd inspection for your own peace of mind which didn't uncover anything. 

      If the sale was "as-is" after multiple inspections, you may not have much strong footing to stand on - just FYI. 

      Not wanting to sound negative, but I'm still so confused how multiple inspections ordered by the buyer (and allowed by the seller) could miss a hidden basement - and how could a seller that allowed multiple follow up inspections be indicative of them trying to hide something? 

      Again, more context would be useful to know the full picture its just very confusing how we got here.


       It wasn't 2 inspections, it was 2 inspectors who did the inspection. The sale was not "as is".

  • Real Estate Broker · New York, NY · Member since 2020 · 2k+ posts · 1k+ votes
    1y

    Are you sure sale was not "as-is" ? Muardost NYC/NYS transactions are after an inspection has been completed @M Edouard - it should be stated (or not) on the first couple of pages of the contract. 

    You should also review the inspection report again and see if the inspectors mentioned anything in the report - as this could open up to liability too, assuming they didn't include a foot note or something in the report. 

    It's odd to "hide" something like this as building paperwork/records/title search/etc. should have indicative signs. 

    Were there no windows protruding from the sides of the house/floors? Did you use your own broker? This could also be something a broker should have been able to highlight if they toured the property with you - but typically if you've ordered inspections then the onus is on you for due diligence. 

    I'm just trying to think this through - "hiding" a basement is nearly impossible. Even a basic inspection when looking at electric meters, water meters, vent pipes, etc. from the exterior of a home would indicate a basement. Very confusing indeed. 

    Feel free to reach out to me to add more context, happy to hop on a call as I'm curious how this will play out. 

  • Investor · Fort Washington, MD · Member since 2014 · 1k+ posts · 1k+ votes
    1y

    I'm no lawyer at all, but If I were them, I'd argue I don't have a basement because I filled it in. i know it's different, but if a had filled in a pool or septic and it's not in service, I'd consider it nonexistent. This is unique and could be interesting in court. I'd love to hear the litigation. If i were the lawyer, I'd say there is no basement and if any property inspector asked about it I would elaborate. 

Join the conversationCreate a free account to reply, vote on answers and follow this thread.