Another case of undisclosed defects

Q. We bought our home about 6 months ago, and now we are stuck with a bundle of problems that were concealed by the sellers, dismissed by the agent, and overlooked by our home inspector. Unfortunately, our agent was also the listing agent for the sellers who happen to be her personal friends, and she also selected the person who did our home inspection. The main problem with the house is ground water seepage into the basement. The seller disclosed that there used to be a drainage problem that was corrected, but they provided no documentary proof of the alleged repairs. When we first looked at the property, we noticed a musty smell and pointed this out to the agent. She said, "I've been an agent for a long time. This just smells like an old basement, not a moldy one, and I know the difference…." She also persuaded us to buy the property "as-is" so that the sellers would accept our offer. After moving in, we discovered that the basement carpet was wet. When we removed it, we found mold and rot on the baseboards. We have also learned that the sellers hired a contractor to dry out the carpet and repaint the basement before we bought it. The costs to correct the drainage, repair the water damage, and eliminate the mold are very high. What can we do?

A. If you had written to me during the course of the transaction and said, "Dear Barry, We are buying a home that has musty odors, the dual agent (who is a friend of the sellers) says this is not a problem, the agent has chosen our home inspector, and the agent is persuading us to buy the home as-is," I would have told you the following: "The agent is representing the interests of the sellers only. You need someone to represent you, which means find an agent of your own to help you negotiate." I would also have advised you to hire your own home inspector, not an inspector who was chosen by an agent with an apparent bias.

Agents know which home inspectors are the most qualified and thorough. An agent who is more interested in the commission check than doing what is right will recommend inspectors who disclose fewer defects. To those agents, the best inspectors are known as "deal killers."

My advice is twofold. First, have your home reinspected by a qualified professional who has many years of experience and a reputation for thoroughness as an inspector. Whether the agent's home inspector is liable depends on whether there were visible defects that were within the scope of a home inspection, as defined by industry standards. Call several real estate offices and ask who are the most nit-picky inspectors in the area.

Second, get some advice from a real estate attorney regarding your available options for redress against the sellers and the agent for nondisclosure), and the home inspector for professional negligence. Certified letters on legal stationary should alert all parties that you are very serious about this matter.

• To write to Barry Stone, visit him on the web at www.housedetective.com, or write AMG, 1776 Jami Lee Court, Suite 218, San Luis Obispo, CA 94301.

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