HELP! Sellers didn't disclose major issues - unrentable and requires massive repairs

HELP! Sellers didn't disclose major issues - unrentable and requires massive repairs

Member since 2019 · 3 posts · 2 votes

We recently bought a property that we have found out within the first few weeks of owning it that is has VERY SERIOUS drainage and humidity issues and lots of previous water damage that the sellers did not disclose. Massive dehumidifiers are filling with - we can't rent until a slew of multi thousand dollar repairs are completed.

We were told that the dehumidifiers the sellers had in the house were only used during the spring when snowmelt was very bad. When the sellers left, they left the dehumidifiers on and we are now removing over 2-4
gallons of water DAILY with them and it would be more if they didn't fill up then shut off. Smaller ones are filling up within 12 hours and the large unit they left with 2x 5 gallon water jugs to empty into AND a catchment below....because obviously the sellers knew that it fills over 5+ gallons in just TWO DAYS.

We have had to get a structuralengineer in who has noted other water damage throughout the basement (unfinished) that was hidden behind sellers boxes and personal items during our inspection. Our original inspector noted a drainage issue on the north side because of improper sloping. Sellers did not allow us to get professionals in to give estimates for a french drain before closing (yes, our red flag we should have walked away with), but agreed to lower closing price. We have also found our that the sellers lied on their disclosure of what they knew about the hail damage to roof. We
did get negotiate money from them to help with roof repair, but now know they were not honest on their disclosure.

Our inspector missed  code violations, HVAC issues, pipes that had been worked on and issues hidden that had occurred while sellers lived in the house, signs of drainage and water damage inside the house that had been painted over, completely blocked dryer vent...and we are finding more daily.

We have had the house looked at by a structural engineer and HVAC techs  that has told us we need thousands (likely tens of thousands) of dollars worth of repairs to make this property able to rent and come up to code for rental. We also can't have renters dealing with the humidifiers as it is a mold problem/foundation issue if it isn't taken care of.

We are taking pictures and videos of everything, we have multiple professionals that have documented everything (and told us to lawyer up) and have neighbors that we have already had agree to discuss their  drainage problems when we get a lawyer.

HELP!!
-Recommendations for Denver real estate lawyers? Especially if they specialize in seller disclosure problems.
-We have to move forward to help mitigate this problem b/c one owner lives 3 hours away and I live 30 min away and can't be at the house daily to empty dehumidifiers.
-What other information should we be gathering?
-What else can we do?!

Thank you for ANY advice!!!

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New to Real Estate · Phoenix · Member since 2024 · 5 posts · 10 votes
2y

Just a potential short term solution to the emptying daily issue, I don't have answers to the other questions above. 

I don't know how the humidifiers are configured, but you might be able to put a small pump into each reservoir (search "automatic bilge pump" on amazon) and move the water into either a larger collection tank (think 55 gallon drum) or drain. Might be able to pump it up out of the basement entirely if you are creative. This would solve the problem of having to be there daily. Likely would move it to weekly, if you can pump it entirely out of the basement then it's handled indefinitely (you just need to check on the bilge pumps). 

Shorter term solution, probably could be done in 5 hours by someone handy for less than $200 of materials. 

EDIT: take a look at the SAILFLO 2000 GPH 12v Electric Bilge Pump. In the specs, it says it can pump water up 20 feet vertically, so that should get you out of a basement if it has a window or something. You'll need to figure out how to wire it (it's not that tricky, a lot of devices have a 12v power supply) or pick a different model that can plug into a wall but has similar specs. 

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  • New to Real Estate · Phoenix · Member since 2024 · 5 posts · 10 votes
    2y

    Just a potential short term solution to the emptying daily issue, I don't have answers to the other questions above. 

    I don't know how the humidifiers are configured, but you might be able to put a small pump into each reservoir (search "automatic bilge pump" on amazon) and move the water into either a larger collection tank (think 55 gallon drum) or drain. Might be able to pump it up out of the basement entirely if you are creative. This would solve the problem of having to be there daily. Likely would move it to weekly, if you can pump it entirely out of the basement then it's handled indefinitely (you just need to check on the bilge pumps). 

    Shorter term solution, probably could be done in 5 hours by someone handy for less than $200 of materials. 

    EDIT: take a look at the SAILFLO 2000 GPH 12v Electric Bilge Pump. In the specs, it says it can pump water up 20 feet vertically, so that should get you out of a basement if it has a window or something. You'll need to figure out how to wire it (it's not that tricky, a lot of devices have a 12v power supply) or pick a different model that can plug into a wall but has similar specs. 

  • Bill S.Pro Member
    Moderator
    Rental Property Investor · Denver, CO · Member since 2013 · 4k+ posts · 2k+ votes
    2y

    @Ashley Gamble not sure how I didn't see this before but I hope you have made progress on this issue by now. Assuming the property is in the Denver area, the issue is likely drainage and ground water. I am not a lawyer, but the fact that that concessions were give for the issues I would think would weaken your case. Personally, I would look to their agent for some responsibility. Especially if they knew the sellers. Agents must also disclose known issues in Colorado. My thought is that your first task is to figure out exactly what must be done to correct the situation and then get a price tag. I realize you are a ways away but if you get an attorney involved you are looking at more time and in my experience, most people are never are happy with the out come. Lots of money to attorneys, lots of time lost and you still have a house that needs fixing.

    One word of caution, be careful of who you take advise from concerning the HVAC and drainage issues. There are often cost effective solutions (ie a few thousand dollars) vs 10s of thousands when you consult the correct advisors. Remember, this is a rental property and most companies are accustomed to dealing with home owners. There are some HVAC companies that unless they design the system and it's newer than 5 years, they recommend a whole new system. They are more sales than solutions IMO.

    Also be careful regarding the "structural engineer". I had a old house (1940s construction) that the buyer brought in a friend who was "a structural engineer". That structural engineer told the buyer to "run from it". I looked up the engineer's resume and their "experience" was less than five years of designing new commercial steel office buildings for the suburbs. The next buyer brought in an engineer who had over 20 years experience with older residential homes in Denver and said, "yeah, it's not perfect and certainly not to current code but it will likely continue to function as it has for the past 80 years." They bought the home and have had no complaints to my knowledge.

    With regards to wet basements and crawl spaces, many times the simple solution is to correct drainage around the exterior. Extensions on downspouts 10 ft away from the building, grade the surface to slope away from the foundation at least 6 inches in 4 feet, provide positive surface drainage around the structure, and finally stop irrigating landscaping within 10 ft of the structure. There are only few areas where the ground water is high enough to significantly impact a structure. In a lot of cases, there was a drainage system installed but it was not properly maintained and therefore doesn't work. 

    I hope you get this worked out.

  • Investor · SC NC, VA · Member since 2020 · 1k+ posts · 756 votes
    2y

    Like Bill was leading to, your first task is to stop the water intrusion.  It’s a bit confusion as you talk mostly about the humidity level but not about standing water.  Gallons of humidity from the air itself is certainly an oddity.

    So you need to find where the water is getting in.  If it’s not from leaky pipes, nor high-water levels, then it’s from surface water.  

    If the house was built on a slope then you’ll need a French drain installed on the high side to take the water away from the foundation and around the house.  If the house is built on level ground, then just get a landscaper to slope the ground away from the house all the way around.  Also, make sure you have gutters (are they clean?) that have downspouts that terminate at least four feet away from the foundation.

    Once you stop the water intrusion you’ll be able to see what, if anything, needs to be fixed.  Remember, your tenants aren’t going to pay you more rent for a pretty basement so only do what you need to to keep them warm, safe, and dry.

  • Investor · Austin, TX · Member since 2017 · 107 posts · 89 votes
    2y
    Not against a consultation, but if your lawyer won't take the case on at least partial contingency it's probably not a strong case. You need to pull out your property disclosure statement and see if a case passes the sniff test. Like someone else mentioned, if you took concessions for the issue they will produce the documentation and get your case thrown out.
    You can pursue an as-is sale, make sure you disclose this issue. You may be able to get out of this bad deal with only your fees as a loss.
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