Hello, This past spring I purchased an older home in the Delton area of Edmonton. As we`ve done with every purchase, we had the home purchase subject to inspection. The inspector, who was someone recommended by this forum, did their job and things looked pretty good. There were some issues like replacing the shingles and hot water tank. Nothing major was noted. After some renovations were started to make the basement suite conform, we got the bad news. The foundation had cracks thoughout and the more we looked behind the various patch jobs, the situation deteriorated! The subfloor was totally waterlogged and full of black mould. The only solution was to tear the entire basement apart and get "Basement Solutions" in to deal with the cracked foundation. This was cheaper the lifting the house off of the foundation and pouring a new foundation. After completing the new basement suite I`m left with a bill that exceeded $50,000!! In a situation like this, what is my recourse? If having an inspection done fails to point out major issues such as these, why bother?!! I know that it`s pretty difficult to pin the onus on the previous owner as it is hard to determine when the patch jobs were done and by whom. I don`t want to hire a lawyer to deal with this if it`s going to mean wasting even more money. Thanks for your help, Tim
Poorly Inspected Home
- Thread starter TMahoney
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Most inspectors have clauses within their contracts that limit their liability to the cost of the inspection or less.
Also, if the basement was finished it`s likely the inspector couldn`t see the foundation since the walls would have been covered up.
Now, most good inspectors have a `moisture meter` which detects moisture to within 2-3 inches of the detector. Our inspector has used this in basement bathrooms where water issues can be prevalent, and we have found stuff like a little water behind bathroom tiles or other smaller issues that what you found.
Since you have $50k into this (that is a lot of money, no kidding!) I think you owe it to yourself to get the inspection contract you signed and spend another $500 and get a lawyer to at least give you their take on it. The inspector may carry liability insurance and you might be able to recover some of your money through that.
Now, if the patchwork was done in an obvious way to cover up these things then you might have a case against the previous owner for not disclosing a `material latent defect`. In order to get any traction here I think you would need your new contractor to back you up with an affidavit that supports your claim.
Anyways, bottom line, If I had an unplanned $50k expense on something I bought insurance for (inspection) I wouldn`t be shy about going a little deeper into the well to see if I could get any back.
QUOTE (TMahoney @ Oct 6 2008, 08:17 AM) Hello, This past spring I purchased an older home in the Delton area of Edmonton. As we`ve done with every purchase, we had the home purchase subject to inspection. The inspector, who was someone recommended by this forum, did their job and things looked pretty good. There were some issues like replacing the shingles and hot water tank. Nothing major was noted. After some renovations were started to make the basement suite conform, we got the bad news. The foundation had cracks thoughout and the more we looked behind the various patch jobs, the situation deteriorated! The subfloor was totally waterlogged and full of black mould. The only solution was to tear the entire basement apart and get "Basement Solutions" in to deal with the cracked foundation. This was cheaper the lifting the house off of the foundation and pouring a new foundation. After completing the new basement suite I`m left with a bill that exceeded $50,000!! In a situation like this, what is my recourse? If having an inspection done fails to point out major issues such as these, why bother?!! I know that it`s pretty difficult to pin the onus on the previous owner as it is hard to determine when the patch jobs were done and by whom. I don`t want to hire a lawyer to deal with this if it`s going to mean wasting even more money. Thanks for your help, Tim
Also, if the basement was finished it`s likely the inspector couldn`t see the foundation since the walls would have been covered up.
Now, most good inspectors have a `moisture meter` which detects moisture to within 2-3 inches of the detector. Our inspector has used this in basement bathrooms where water issues can be prevalent, and we have found stuff like a little water behind bathroom tiles or other smaller issues that what you found.
Since you have $50k into this (that is a lot of money, no kidding!) I think you owe it to yourself to get the inspection contract you signed and spend another $500 and get a lawyer to at least give you their take on it. The inspector may carry liability insurance and you might be able to recover some of your money through that.
Now, if the patchwork was done in an obvious way to cover up these things then you might have a case against the previous owner for not disclosing a `material latent defect`. In order to get any traction here I think you would need your new contractor to back you up with an affidavit that supports your claim.
Anyways, bottom line, If I had an unplanned $50k expense on something I bought insurance for (inspection) I wouldn`t be shy about going a little deeper into the well to see if I could get any back.
QUOTE (TMahoney @ Oct 6 2008, 08:17 AM) Hello, This past spring I purchased an older home in the Delton area of Edmonton. As we`ve done with every purchase, we had the home purchase subject to inspection. The inspector, who was someone recommended by this forum, did their job and things looked pretty good. There were some issues like replacing the shingles and hot water tank. Nothing major was noted. After some renovations were started to make the basement suite conform, we got the bad news. The foundation had cracks thoughout and the more we looked behind the various patch jobs, the situation deteriorated! The subfloor was totally waterlogged and full of black mould. The only solution was to tear the entire basement apart and get "Basement Solutions" in to deal with the cracked foundation. This was cheaper the lifting the house off of the foundation and pouring a new foundation. After completing the new basement suite I`m left with a bill that exceeded $50,000!! In a situation like this, what is my recourse? If having an inspection done fails to point out major issues such as these, why bother?!! I know that it`s pretty difficult to pin the onus on the previous owner as it is hard to determine when the patch jobs were done and by whom. I don`t want to hire a lawyer to deal with this if it`s going to mean wasting even more money. Thanks for your help, Tim
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I would not be too quick to dismiss the previous owners liability. It is difficult to believe that someone living in the house was totally unaware of water problems. How long did they live there prior to the sale. Talk to the neighbors they may know something.
Were there any signs of resent finish work in the basement (cosmetic).
Were there any signs of resent finish work in the basement (cosmetic).
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Here is the down side of being a "sophisticated investor". You give no indication of how many properties you own. If you choose to sue, the court will look at your experience and knowledge. If you have several purchases under your belt, a court may assume you have the knowledge to have foreseen the problem yourself. The court MAY not be very sympathetic to your case, regardless of whether or not the previous owner did not disclose the problem.
My comments are not suggesting you do not have a case to pursue. I tend to agree that the previous owner knew of the problem and probably deliberately chose not to disclose. That could be misrepresentation, and possibly fraud.
You need to talk to your lawyer.
My comments are not suggesting you do not have a case to pursue. I tend to agree that the previous owner knew of the problem and probably deliberately chose not to disclose. That could be misrepresentation, and possibly fraud.
You need to talk to your lawyer.
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Hello Tim,
Not an easy sitruation to deal with indeed. I think you got some great advice above.
Also, not sure if your home inspector was a CAHPI member(?) (CANADIAN ASSOCIATION OF HOME & PROPERTY INSPECTORS)
I contact ONLY CAHPI members for home inspections. Obviously they too can not detect eveything and provide a very limited insurance/liability.
Good luck resolving this issue.
Regards,
Neil
Not an easy sitruation to deal with indeed. I think you got some great advice above.
Also, not sure if your home inspector was a CAHPI member(?) (CANADIAN ASSOCIATION OF HOME & PROPERTY INSPECTORS)
I contact ONLY CAHPI members for home inspections. Obviously they too can not detect eveything and provide a very limited insurance/liability.
Good luck resolving this issue.
Regards,
Neil
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- 298
Not that this will help your situation - sorry - but I think it will definitely help any future transaction: Always get an inspector who does moisture testing EVERYWHERE, especially all bathroom walls and all basement walls/floors. I`ve run into a similar problem as you and just had to bite the bullet and get the problem solved. Live and learn from your mistakes and be happy that the problem is solved.
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- Mar 11, 2008
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What did the Sellers Disclosure Statement reveal?
You might have cause to sue the seller for damages, claiming misrepresentation and breach of contract and the agent and the broker will be joined in the action" for their role in using the forms.
You might find this of interest:
http://www.aaron.ca/columns/2008-07-26.htm
You might have cause to sue the seller for damages, claiming misrepresentation and breach of contract and the agent and the broker will be joined in the action" for their role in using the forms.
You might find this of interest:
http://www.aaron.ca/columns/2008-07-26.htm
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We had a similar situation with an inspector not finding a couple of major mold problems. One on each side of a duplex.
We had the previous owner sign a disclosure sheet but he was a landlord and I can`t prove he would know about the "covered up problem".
We have fixed both properties including a foundation and I think it is a grin and bare it situation. On our next property we plan to find a way to "sniff potential mold problems" however we can.
Every time we find a problem, we learn to how look for another potential problem in the next home. Although we would still get the inspections done we know the inspectors are just people and can only find so much. There are things that anyone can miss.
Terry
We had the previous owner sign a disclosure sheet but he was a landlord and I can`t prove he would know about the "covered up problem".
We have fixed both properties including a foundation and I think it is a grin and bare it situation. On our next property we plan to find a way to "sniff potential mold problems" however we can.
Every time we find a problem, we learn to how look for another potential problem in the next home. Although we would still get the inspections done we know the inspectors are just people and can only find so much. There are things that anyone can miss.
Terry
My wife and I had a similar issue when we recently purchased a new residence for our family. The inspector used a water-meter and found no moisture issues, however after the purchase we found water damage in the basement - door casement molding was soft and looked like it was previously water-logged. My main concern is exposing the family to mould. I found a Calgary based mould and air quality inspection service (Mould Dogs Inc.) and have spoken with them. They take air samples and/or use dogs to find hidden mould. When I called the inspector directly he indicated that they did have error/omissions insurance and asked me to call the owner of the company. We`ll see what he`ll have to say.
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Most Home Inspectors only offer visual inspections. In other words they don`t move, pull a part or cut inspection holes. Find an inspector that uses a thermal imaging camera. It`ll cost a bit more but you won`t believe what you can see behind the walls. Good inspectors will follow up on area`s of concern with a non penetrating moisture probe as well as check the realitive humidity with a Hygrometer.
Doug
Doug