Imagine you’ve moved into a new home and a month after living there, the basement floods from a heavy rainfall. You review the Residential Property Disclosure form that sellers in Ohio are required to fill out truthfully for buyers. All buyers should receive this form prior to closing on a property. There is no indication of prior flooding reported. The company you hire to make repairs lifts the ruined carpeting, which reveals mold and a deteriorated tack strip. They suggest the flooding was not new.

Here are the range of possibilities regarding the basement defect:

∙ The seller might have not noticed previous flooding, which may have not been as noticeable. Weather conditions can change.

∙ The seller may have lied on the disclosure form and hoped for the best.

∙ The seller may have made an insurance claim with repair more than five years ago and thought the problem was fixed. (The Ohio disclosure form only requires reporting of water problems and mechanical system repairs within five years.)

∙ The seller forgot there was an issue.

Any of the above are possible and it might take a bit of detective work to figure out the truth. For example, you might need evidence that a repair person had come to the home, or hire experts to determine if there was evidence that the problem was too big not to notice. Proof of an insurance claim made by the seller in recent years would also be valuable. You would require legal representation to pursue compensation from the seller. In the meantime, keep photos of the damage and do what is necessary to mitigate the problem. Keep clear records of what you’ve spent to do so.

Ohio sellers can be held liable for failing to disclose a material defect. The legal challenge of course is to prove that the seller knew of the defect. With something like water damage, evidence might be obtained. But with something like a crack in the foundation that was hidden behind a structure or a clogged sewer pipe underground, it may be more difficult to find proof.

Questions to Ask Before Signing a Purchase Contract

The best tip for buyers before signing a purchase contract regarding defects is to ask lots of questions. This list can often help ferret out any hidden truths about the property:

∙ Have you had a whole-house inspection, including termites, radon, mold, structural, or other types?

∙ What insurance claims have you made on the property since owning it and what were the outcomes?

∙ Can you please share the reports in regard to all of the above?

∙ If the seller will not share the reports, ask why and what they would think if in your position.

Of course a whole-house inspection is always recommended for home buyers before purchasing, but such inspections cannot necessarily find all material defects, nor do they claim to be able to do so.