Dec. 28, 2011
Dear George: The Seller’s Disclosure Notice I received did not list any water damage to the house I was buying. When I went to get insurance, I was told that the house had previously had a water damage claim for $15,000. The seller's broker said the sellers felt they did not have to disclose the prior water damage because it had been repaired. Aren't they supposed to disclose such damage and repairs? Shouldn't the broker have made them disclose it?
Answer: Whether the water damage must be disclosed depends on the type of damage. If the damage was caused by flooding into the structure or property, such as a rising stream or heavy rain that is improperly drained, it must be disclosed. However, water penetration, if repaired, does not require disclosure, because it did not exist as of the date of the seller’s disclosure. For example, a burst water pipe, while it can cause extensive damage to a structure, would not have to be disclosed. However, the $15,000 insurance proceeds would have to have been used to make the repairs to the structure for which the claim was made in order for the seller to not to disclose the damage.
Dear George: I paid $380 to my lender to have my home appraised. The appraiser came out three weeks ago, but I haven’t heard from the loan company since. I keep calling but all I get is voice mail or promises to call back.
Answer: Contact your loan company again. Let them know that you need an updated status, the appraised value, and a closing date, or your next calls will be to the Texas Department of Savings and Mortgage Lending to file a complaint against the lender and the Texas Appraiser Licensing and Certification Board to file a complaint against the appraiser. Having a cancelled check or other form of receipt from the loan company will help your case.
E-mail a question to ask George & Chuck or fax it to 713-978-6684. The answers to questions in this column do not contain legal advice. If you wish to obtain legal advice, you should consult your own attorney.
