Another disclosure question! (Irving, Canyon, Howe: sales, real estate, renters)

[terilarr]

Buyer beware, I know. but I feel like I was lied to by the seller and the broker and I want damages.
My Wife and I bought a place in Copper Canyon, Tx. and by looking at the plat maps we knew we were in a 100 yr. flood plane for the property, which the home owner did disclose. The only problem was it did not show the dwelling in the plane.
We were only there for 3 monthes and the house and property got flooded costing thousands in damage. After the flood during clean up we found plenty of evidence of prior flooding. On the disclosure form it stated the dwelling had never been flooded. Also we talked with the neighbors and everyone told us she definitely had redid the house because of the prior flooding and it had been flooded many times before, but she never claimed it with the insurance company. Come to find out she had family members came and make the repairs. Shabby job at that!
The more we looked into it the more we realized that we were duped.
I also have 2 young children and it seems we are screwed.
Now everytime it rains hard I have to worry about the house being flooded. If I knew the house had been flooded previously I may not have bought it, or at least negotiated on the price.
Now I am at a loss on what to do next.
After the repairs to the house and replacing the things I lost I don't have the money to keep the house from flooding everytime we get a lot of rain.
I forgot to mention it was FSBO. and found out the bank would not finance without flood insurance, if at all. I feel like a sucker.
Any input would be greatly appreciated.

[ETex2]

I do not understand what you are saying when you state "it did not show the dwelling in the plane". But yet the "property" is in the flood plain. Are you saying that the area where the house is located showed to be out of the floodplain while the rest of the land is in?

Flood plain maps are simply a guideline, and are constantly being revised due to changes in areas prone to flooding. By buying a "property" within the floodplain, you were taking a risk. But you may have a case against the seller; only a visit to a good real estate attorney will help you at this point, I'm afraid. Good luck.

[escanlan]

Originally Posted by terilarr

Buyer beware, I know. but I feel like I was lied to by the seller and the broker and I want damages.
My Wife and I bought a place in Copper Canyon, Tx. and by looking at the plat maps we knew we were in a 100 yr. flood plane for the property, which the home owner did disclose. The only problem was it did not show the dwelling in the plane.
We were only there for 3 monthes and the house and property got flooded costing thousands in damage. After the flood during clean up we found plenty of evidence of prior flooding. On the disclosure form it stated the dwelling had never been flooded. Also we talked with the neighbors and everyone told us she definitely had redid the house because of the prior flooding and it had been flooded many times before, but she never claimed it with the insurance company. Come to find out she had family members came and make the repairs. Shabby job at that!
The more we looked into it the more we realized that we were duped.
I also have 2 young children and it seems we are screwed.
Now everytime it rains hard I have to worry about the house being flooded. If I knew the house had been flooded previously I may not have bought it, or at least negotiated on the price.
Now I am at a loss on what to do next.
After the repairs to the house and replacing the things I lost I don't have the money to keep the house from flooding everytime we get a lot of rain.
I forgot to mention it was FSBO. and found out the bank would not finance without flood insurance, if at all. I feel like a sucker.
Any input would be greatly appreciated.

Hello terilarr,

First off don't work yourself up in a worry. There are always options to handle issues such as these. Some are easier with more property space but there are options even for smaller properties. If you PM me the address I can check aerial views and see what potentials there are for corrections. The most important thing first is to try correcting and/or alleviating the potential for further flooding.

The issue you have described is based around whether you can prove the owner had knowledge of previous flooding conditions and incidents. From your description they were trying their hardest to not leave a paper trail. However, that does not always work and there are many traps people fall into when trying to deceive others. Here are some suggestions after you have looked at potential corrections.

The first thing I would do is to pull a CLUE (Comprehensive Loss Underwriting Exchange) report on your home. This is the insurance industry database for claims on the home and a description can be found at CLUE and You: How Insurers Size You Up | Privacy Rights Clearinghouse. This database is maintained up to seven years and might include more than actual claims. Underwriters are very particular when it comes to paying out claims. As a result many carriers will use the CLUE report not only for claims but also if the homeowner called their carrier to inquire about a potential claim, even if one was not filed or paid on. It is possible the previous homeowner got caught on that trap and there is a record of a potential claim conversation in CLUE. The CLUE report will even list the names of the previous insurance carriers. This can come in helpful if you need to inquire directly to them if there ever was a potential claim not reported on the CLUE database.

Another potential is to speak with the neighbors and see if they recall any service trucks there and if they recall the dates (or nearby) and names of the companies. You can try calling these companies to see what work was performed and if they can provide any records of the work? It is always possible that the company might have records indicating repairs for previous flood damages. When you speak with the neighbors try to obtain as much history as possible regarding previous incidents, services, etc. If you can get dates, or near dates, do that as well. I would also ask around to see if other neighbors are experiencing issues with high water or flooding or if it is just your property location/configuration that was experiencing an issue. They might even provide you their prevention steps they used successfully.

Another potential is to speak with the local city and county officials to see if they have kept any records of flooding incidents and occurrences over the past years the previous owner was there. These might fall under the responsibility of the city/county emergency management team or they might be able to tell you who might have any records. The counties are constantly monitoring events for not only emergency management but also to help keep their, and FEMA's, flood maps updated. If a significant enough event occurred it might well have affected areas listed for your neighborhood. There might be a recorded of one. While you are speaking with the emergency management team they might also provide maps of known heavier flooding areas that they have pre-set emergency plans to deal with.

Did you have a home inspection performed on the home before you bought it? Was there any indication of prior potential flooding damage listed on the report? Did the report list any apparent drainage and grading problems with the property? This along with other finds could help strengthen your case. If you are unsure about the report I would be happy to review it for you to see if there is anything useful there.

Other steps would potentially require hiring an Attorney to access information not readily available. First though I would concentrate on eliminating or at least alleviating the flood potential to the home.

[terilarr]

The maps have not been updated with fema in some time and it does not show the dwelling in the flood plane but it is close. The neighbors and even previous renters all verified the house had flooded at least 3 times since 2005 and the owner had repairs done herself, no paper trail. She told us it had a little water on the carpet and they just took it our and let it dry and reinstalled it. This was after we were flooded. The neighbors and others said they would sign affadavits stating she definitely knew of the flooding.

[nsumner]

Do you know for a fact that the broker knew about the previous flooding and didn't let you know? We list homes and disclose what we know and what the seller provides. The seller disclosure notice is the one document an agent can NEVER help a seller with.

You mentioned that it was FSBO. Who was the broker representing?

In your sales contract, check if you selected the "mediation" route for disputes. You do need to consult with an attorney since you're seeking damages.

I represented a buyer about 10 years ago in Irving and the seller's disclosure said that they were not aware of any foundation issues and that they have never received a professional opinion on it. the home was occupied and full of furniture. this was a 2 story house built in the early 60s.

The day of closing, we went to do a final walk through and the house was empty and we could easily feel the shifting and dips in many areas of the home. The buyers still wanted the house and decided to get some quotes before they close so we delayed closing. They got a couple of quotes and one of the companies that showed up said that he was there about 6 months ago giving the owners a quote on the repair. Now the buyers were furious because they were lied to, ovbiously very understandable. We ended up closing and the sellers paid for the whole work.

I know that your situation is different because you already closed and occupy the home. This is why you need legal advice from an attorney.

Please post a follow up on what happens.

Naima

[terilarr]

Yeah the mediation route was checked and I have consulted an attorney, but of course he wants a big retainer upfront. The broker denies knowing anything about the flooding and checked no flooding in the structure. It seems to be out and out fraud. I do not understand, I thouught fraud was criminal offense. Why can't they be arrested? I don't know, very frustrating!

[terilarr]

The Broker was actually representing us both, seems like a conflict there!

[ETex2]

At any rate, it will be a civil matter so don't expect anyone to be arrested.

[terilarr]

Why is it a civil matter, when fraud is against the law?

[ETex2]

If you don't believe me, go ahead and call the cops and try to get the seller arrested. They won't do it, and they'll tell you it's a "civil matter". Why? - because that's the law. What he did might be technically "against the law", but right now it's his word against yours. Once you prove that he defrauded you, call the DA. He might consider it a criminal offense, but I seriously doubt it.

If in doubt, just go for it.