We bought a house last October in NJ. Seller disclosed "no prior water damage". We just now found an insurance claim for water damage from hurricane Irene for $3700 (new carpet). When asked they initially said nothing, we threatened with lawyer they told us where the damage was and offered to pay for a sump pump. We asked for details as to the source of the problem, now they're not returning our emails.
My concern is it could be (worst case) a horizontal crack in the foundation wall, i.e. structural damage. Can't tell though since the basement is finished with paneling.
Questions:
1. How would it affect our ability to sell the house and or the resale value if we had to disclose to prospective buyers "there was water damage, we don't know the source, and it has not been fixed"?
2. If we go to court we have to claim fraud since their representations did not "survive closing". In order to have fraud I need to have some damage. How do I put a dollar figure on the damage they caused us by not disclosing and fixing the problem before closing?
3. Does anybody know about similar cases, either in court or resolved amicably (which is what we still prefer)?
My goal is to get this fixed and documented as resolved with no cost to us.
Thanks a lot in advance,
Thomas
