non-disclosure of septic tank problem

1 ANSWERS

1. paafamily
   

   Federal and state laws now require sellers of residential properties to provide a disclosure of all know defects afflicting the property. In addition, if the home was built before 1978, the seller must also provide a disclosure about any know lead-based paint hazards. The seller of residential properties is legally obligated to disclose all known defects, which would not be readily apparent with a standard inspection. Failure to do so may not be fraud in the strictest of terms, but it would
   be grounds for damages or a rescission of the transaction. For example, Warren’s home is in unincorporated McHenry County, Illinois, and must use a septic tank. The septic tank needs to be replaced, due to lack of maintenance; but the damage is invisible from the surface. Warren sells his home to Lana without
   disclosing the problem with the septic tank. After moving in, Lana has to spend about $5,000 to repair the septic tank. Lana can sue Warren for damages, if not rescission.
   
   Many jurisdictions now recognize that undesirable history that is not revealed to the buyer may also be grounds for damages or rescission. For example,
   properties that were the scene of vicious crimes (such as murder) may be subject to rescission of the sale, if that history is not revealed to the buyer.
   
   This requirement for disclosure is balanced somewhat by the buyer’s responsibility to do some due diligence. The basic rule is that if the information is readily available to the buyer, the buyer may not be able to sue the seller for misrepresentation or nondisclosure. For example, a tour of the property reveals water stains
   on the basement walls. Those were obviously caused by flood or water damage. The buyer decides to skip on the cost of an inspection, and the buyer does not ask questions about the water stains. This buyer may have a difficult time winning a suit for damages or rescission, because the damage was apparent and the buyer did not make any attempts to ascertain the facts.
   
   Fraud issues is not limited to the condition of the property. In fact, most fraud suits revolve around problems with the title.

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