Numerous property inspections typically occur before a real estate closing. Buyers usually look over listing photographs or online tour materials before scheduling a showing or attending an open house.
They look carefully at the property’s condition while viewing it with their agents. Typically, they also pay for an inspection, as well as an appraisal, especially if they intend to use a mortgage for the purchase. In addition to personally checking the property and hiring professionals, buyers should review the written disclosure provided by the seller.
What happens if a buyer takes possession and discovers significant defects that the seller did not advise them of before the closing?
Disclosure omissions can be grounds for a lawsuit
Tennessee state statutes impose clear requirements on those selling real property. They have an obligation to inform prospective buyers in writing of any known defects, including latent defects that may not turn up during a walk-through or cursory inspection.
The seller cannot list the property in as-is condition or indicate that they do not know about defects when they have knowledge of actual issues with the home. If they do so, they may ultimately be liable for the economic consequences for the buyer. Occasionally, listing agents may also have a degree of liability, and their professional insurance may apply.
Buyers who discover surprise issues with their homes may have the option of taking legal action against sellers who misrepresented the condition of their property. Reviewing closing paperwork and reports regarding the recently discovered defects with a skilled legal team can help buyers determine if they have grounds for a real estate lawsuit.