Imagine buying your dream New Jersey home, only to find defects that are not in the seller’s disclosure statement. Should you pay for the repairs yourself or can you recover compensation from the seller?
Here is some important information that can help you proceed.
What defects do sellers need to disclose?
New Jersey law requires all home sellers to disclose “material defects” they know about. Minor issues like chipped paint or worn-out carpets do not belong in this category. Rather, material defects are problems substantial enough that the seller should have told you about them.
There is no specific definition of “material” under New Jersey law. However, according to the International Association of Certified Home Inspectors, a material defect may have a significant, negative impact on the property’s value or pose a risk to people. Examples include:
- A broken or unfinished roof that leaks moisture into the house
- Decayed siding that exposes the underlying structure
- A cracked foundation that affects the house’s structural integrity
Sellers must disclose known defects in the Seller’s Property Condition Disclosure Statement. This document helps buyers decide if they should buy the property and for how much.
What if a seller fails to disclose a material defect?
A home seller may be liable if they do not disclose a defect despite knowing about it. This means you might be able to file a claim or lawsuit against them.
However, you have the burden of proving that the seller knew about the issue. One possible solution to this is hiring a home inspector who can:
- Estimate when the problem started
- Determine if it should have been noticeable to the previous owner
- Calculate the cost of repairing the issue
You can also research the property’s maintenance, repair and renovation history. If the documents reveal that the seller tried to remedy the problem, then they likely knew about it.
How do you know if you can take legal action?
Whether you have grounds for a claim or lawsuit may largely depend on the evidence you can gather. It is advisable to work with a real estate attorney who can help determine the seller’s liability. They can also figure out if other people share fault, such as a home inspector who failed to discover the defect when they should have.
By understanding your legal options, you can increase your chances of a favorable outcome and, at the same time, help protect your financial future.