water damage not in seller's disclosure (insurance, buying, refund)

[richard88]

Hi,

After the option period, when I asked the seller's the receipts on the repairs, I was given a water flood damage insurance claim of $26k due to the upstairs toilet leak. The repair has been done and restored with all the money going to the restoration 5 yrs ago. My realtor told me this is good for me ? I supposed she meant we got new stuff. When I asked why this is not in disclosure, she said because the repairs has been done, it is no need to report in the disclosure ... is it true ? Can this omission get me out of the contract and refund my earnest money ?

I'm not sure if this case is called the "water penetration" case as in :

Water-Damage Disclosure Issues! When Does A Seller Need

Experts & Realtor please help ! Thanks !

[FalconheadWest]

Originally Posted by richard88

... she said because the repairs has been done, it is no need to report in the disclosure ... is it true ? Can this omission get me out of the contract and refund my earnest money ?

Your agent is correct. If there is not a current water issue, there is no need to disclose. The disclosure is about known defects in the property. The sellers fixed the defect and there are no current issues. No, this omission is not a way out of the contract unless you're still in your Option Period. Also, if you already called for insurance rates, a Clue report would have shown the payout, so why didn't you call about insurance during your Option Period?

[Beaching]

Way better than buying and finding out there was a major leak of that magnitude that was only patched and could come back even worse on you. Them showing that something like that has been fixed and fixed properly is a good thing.

[DevilDocWife]

Agreed! Always always request a CLUE report during your option period.

But if the issue was fixed/re-mediated then you are fine. It isnt a disclosure issue and no you can't use this to back out and get your Earnest money back.