Buyer takes issue with seller’s disclosure statement

Q: I recently made a purchase offer on a house. The seller's disclosure statement listed no defects, but the offer was contingent on a clean home inspection report. So, I hired a home inspector and an appraiser for a total cost of $700. When I read the inspection report, I couldn't believe the number of major issues that needed attention, from standing water under the building to rotted wood on the roof. Because of this, I've decided not to buy the house. Since the seller's disclosure statement listed no defects, is he liable for the money I spent on the inspection and appraisal?

A: Unless you can prove that the seller concealed known defects in the disclosure statement, he is not responsible to reimburse your costs. The purchase contract was contingent on your acceptance of the home inspection report. Therefore, your only options are to cancel the transaction or renegotiate the contract.

Reliance on a seller’s disclosure statements is usually disappointing because homes typically have problems of which the seller is unaware. A home inspection report, if properly prepared by a qualified professional, will always reveal more than a disclosure statement.

There are instances where sellers deliberately conceal known defects, but more often they are simply unaware of defects that would not be apparent to an owner. The seller in your case may never have looked under the building and may have been totally unaware of the drainage problem. Likewise, he probably never walked on the roof or crawled through the attic and therefore had no idea that the wood was rotted.

It is unfortunate that you hired an appraiser before you reviewed the home inspection report. The appraisal should have been done after you considered the physical condition of the property. That would have limited your nonrefundable expenses.

Q: When we bought our home, the sellers prevented our home inspector from inspecting the attic. They told him that there was no access. He simply took their word for it and listed “no attic access” in his report. We later discovered that the access was on the wall of the master closet, behind some clothes. Our concern now is whether we have asbestos insulation in our attic. If so, are the sellers liable for asbestos removal?

A: The sellers must have known about the access panel in the closet, although they may not have realized it was the entry to the attic. On the other hand, there may have been some attic issues that they wanted to hide. The answers to these questions should be answered by having the attic professionally inspected.

Your concerns about asbestos insulation are unwarranted. Attic insulation typically consists of fiberglass, rock wool, or recycled cellulose. However, if the home dates back to the early 1970s, there might be asbestos in the air duct insulation or in flue pipes.

The one error that was made by your home inspector was to confirm the lack of an access with no further comment. The inspection report should have said, “No attic access was found. It is recommended that an access be made to enable completion of this inspection” (or words to that effect).

• Distributed by Action Coast Publishing. Questions to Barry Stone can be emailed to barry@housedetective.com.