what kind of lawyer do i need to sue a home seller

There may be differences in the type of lawyer you need depending on the type of contractor you enter into an agreement with. For example, if you contract a real estate agent to sell your home, a business lawyer may not be adequate; you might need a real estate attorney instead.

Full Answer

Do I need an attorney to sue a real estate agent?

Where to Sue Over Home Defects. Your main options for actually filing a lawsuit include: small claims court, if the damages are under a certain limit, or. state court. Filing in small claims court allows you to proceed with your case without a lot of the expensive administrative hassles of a "regular" lawsuit.

What does a real estate attorney do when selling a house?

Others, such as aging plumbing, the seller might have disclosed to you in the course of the sale, most likely through written disclosure forms (as are required in most U.S. states). In either case, if you knew or should have known about a defect, and chose to buy the home anyway, a court will not allow you to sue the seller.

Can I sue the seller of a house I just bought?

If the buyer is not the only owner of the property, he or she may need to hire a lawyer to litigate. When the seller engages in other forms of fraud such as hiding defects or supplying the buyer with inaccurate details, the buyer may have an option to sue him or her for this activity. Some buyers discover these tactics through the neighbors while others suffer injury from the actions …

What remedies are available if you sue a real estate agent?

Do I Need an Attorney to Sue a Real Estate Agent? If you believe you have been wronged by your real estate agent, you should immediately consult with a skilled and knowledgeable real estate attorney in your area. An experienced attorney will help you understand the specifics of your case, and help you determine if you have a valid legal claim.

What is the best way to walk away from a dispute?

If the amount in dispute is simply too much to walk away from, however, then litigation might be the best option. There are a number of legal causes of action that you might be able to assert against the seller, seller's agent, or home inspector: failure to disclose a defect (according to your state's statute)

Can a buyer recover from a seller for a defect?

Ordinarily, only home defects that are material and that the buyer didn't know about, but which the seller did at the time of sale, will allow a buyer to recover from the seller. That means, of course, that most defects you might find within a home will not make the seller legally liable to you.

Do you have to disclose defects in a property before selling?

Nearly all 50 states have laws requiring sellers to advise buyers of certain known, material defects in the property, typically by filling out a standard disclosure form before the sale is completed. Depending on the jurisdiction, this responsibility can override an "as is" clause contained within a purchase contract.

Can you sue a seller for a leaking septic system?

There could be situations where not even the seller knew about the defect. If, for example, an underground septic tank or sewage line was leaking, and the seller knew nothing about it (and therefore did not disclose it to you), you cannot sue over it.

Who is responsible for a defect in a home?

If you believe that you have discovered a material defect that the seller never disclosed to you prior to the sale of the home, there are three potentially responsible parties, each of whom may have some portion of the liability: The seller.

Can you sue a seller for aging plumbing?

Others, such as aging plumbing, the seller might have disclosed to you in the course of the sale, most likely through written disclosure forms (as are required in most U.S. states). In either case, if you knew or should have known about a defect, and chose to buy the home anyway, a court will not allow you to sue the seller.

Do you get a home inspection before buying a house?

Hopefully, you got a home inspection before buying your home. Usually, home inspectors provide a full evaluation of the home's condition prior to closing. In theory, the inspector should have spotted problems that the seller perhaps never knew.

Why do you need an attorney for real estate?

An attorney helps you protect your investment and assets while ensuring you’re conducting your side of the transaction legally — which can prevent costly missteps. Real estate attorneys are required in many states, but even if you aren’t legally required to use an attorney while selling, it can be a good idea.

What is a real estate attorney?

Real estate attorneys help oversee home sales, from the moment the contract is signed through the negotiating period (aptly called the “attorney review”) to closing. A seller’s attorney reviews sales contracts, communicates terms in a professional manner and attends closings to prevent mishaps. Selling a home is a complex process ...

How much does a real estate attorney charge?

How much does a real estate attorney cost? How much you’ll pay for real estate attorney fees depends on your market and how involved they are in the transaction, but they typically charge a flat rate of $800 to $1,200 per transaction. Some attorneys charge hourly, ranging from $150 to $350 per hour.

What to do if you inherited a home?

An attorney can help you navigate the complexities. Estate sale: If you inherited the home you’re selling, hiring an attorney to sort through ownership documents can ease the burden, which is especially helpful when you’re grieving the loss of a family member.

Who is responsible for underwriting title insurance?

Title company: A representative of the title company is responsible for underwriting the title insurance and transferring the clean title of the home to the buyer.

Who hires an inspector to inspect a house?

Inspector: The inspector is hired by the buyer. Their job is to make sure the buyer knows about everything that may need to be repaired on the home. Sellers also sometimes hire an inspector to do a pre-inspection so they can make any necessary repairs before putting the house on the market.

Do you need an attorney for a closing?

In 21 states and the District of Columbia, attorneys are legally required as part of the closing process. Attorney-required states include: As a best practice, if the other party in your transaction has a lawyer representing them and supporting their best interests, you should too.

When does a buyer need to hire a lawyer?

When the buyer experiences complications and difficulty due to defects, he or she may need to hire a lawyer to pursue legal action against the seller. He or she will need evidence and a valid case.

Who must disclose defects in a property?

These may include the agent, a broker, the seller, a real estate lawyer, a surveyor or the person involved in the valuation of the house or land. The state laws regarding this matter will specify just how much if any disclosure is necessary. However, some states do require the buyer to initiate an assessment to determine what issues exist and how complicated they are. The more the defects cost, the greater chances are that the seller

What are the lawsuits against real estate agents?

Some other common lawsuits filed against real estate agents include: Failing to Disclose a Property Defect: The seller or buyer is ultimately responsible for disclosing any property defects involved in a real estate sale.

What are some examples of real estate?

Some examples of what a real estate agent does include: Handling standard client forms; Drafting and preparing offers and other related paperwork; Providing satisfactory customer service if a client has an issue;

What is monetary damages in real estate?

In the majority of real estate related lawsuits, a court will award monetary damages to a plaintiff who has been wronged by a real estate agent. These awards could include: Compensatory damages associated with a breach of contract or misrepresentation.

Why are fiduciaries important?

A real estate agent’s most important aspect of fiduciary duty is the requirement to be honest and make decisions based on the best interest of their client.

What are some common breaches of fiduciary duty?

Some common breaches of fiduciary duty include: Receiving secret profits or fees that are not disclosed to the client (s); Failing to inform a seller of other offers on the table, after an offer has been accepted; or. Declining or accepting an offer without the client’s approval.

What is a real estate agent?

Simply put, a real estate agent is a licensed professional who is authorized to conduct real estate business in a given state. They represent buyers or sellers of real estate, which is essentially property consisting of land and the buildings on it. Real estate agents have obtained an education and training in all matters related to real estate, ...

What is due care in real estate?

Due care is essentially what a reasonable or prudent person would do under the same circumstances. In this case, it would be what a fellow real estate agent would have done. A client may claim that their real estate agent knew or should have known something, but failed to take any action to prevent or address it.

What to do if inspector is negligent?

If they agree the inspector was negligent, you may want to proceed with the lawsuit. The inspector might get a lawyer to send you a demand letter to withdraw the suit. They might also counter-sue you. Do not ignore the lawsuit if they choose to counter-sue you. It varies by state if the buyer, seller, or both can sue the inspector ...

What happens if a home inspection is inaccurate?

If you feel a home inspection report is inaccurate or the inspector hid things on purpose, you might have a strong lawsuit. Consult with your real estate agent and a real estate law attorney.

What is a home walk through?

A home walk-through to learn about its utilities or special features (may depend on your state or inspector) A final report. However, the inspector can only review what is accessible and visible during the appointment. They cannot move rugs and furniture or force open doors or sheds, for example.

How to prove negligence?

To prove negligence, you must be able to show that the inspector did something wrong (typically something another inspector wouldn't have done) and that their action or inaction directly caused you damages -- usually the cost of fixing the defects.

What is a home inspector?

A home inspector is a professional who is aware lawsuits are a part of their job. They are likely always prepared for legal action, and their company may have an attorney on retainer.

Can a buyer bring a claim against an inspector?

A buyer might bring a valid claim against an inspector only to find the sellers repaired the damage or fixed the issue. You can still bring this to court as a "disputed defect," though the case might focus on the seller's actions instead of the inspector's.

Can a sump pump inspector be liable?

However, suppose the sellers did not clear access to the sump pump, and you discover an issue later. In that case, the inspector is probably not liable. You can ask the seller to give access and pay for the inspector to return to the house on a different day.

What to do if a seller failed to disclose a defect?

If you suffered losses because a seller failed to disclose a defect on your property, you should consult with an experienced termite inspection attorney. The dedicated attorneys at Whitney, LLP have extensive experience litigating a wide range of property defect cases. We understand how upsetting it can be to discover a defect in your new home and we are here to fight for you. Our firm will help you pursue compensation from a seller that failed to disclose a serious defect. To schedule a free legal consultation to discuss your potential claim, call us at (410) 583-8000, or contact us online.

What happens if a seller hires an inspection company?

For example, if a seller hires an inspection company they believe is unethical in order to save money, they may be liable for defects the inspector failed to catch. The buyer should also consider hiring their ...

What is a disclaimer statement?

The disclaimer statement is a document that allows a seller to sell their property “as is.”. This means that the seller does not make any warranties or representations regarding the status of the property or any defects on the property. However, even if a seller uses a disclaimer, they must still disclose the existence of a material defect.

How to tell if a defect is concealed?

One way to determine if a defect was concealed is to hire an inspection company and compare their findings to that of the seller or the seller’s inspector. If the defect was easily discovered, this might help you prove that the seller intended to hide the defect.

What happens if a buyer discovers defects on their property after closing?

If a buyer discovers defects on their property after closing, their ability to sue for compensation will depend on various circumstances.

Why do sellers hide defects?

A seller may hide the existence of a defect for several reasons. For example, the defect may drastically decrease the value of the home, and they do not want to repair the issue. The seller may also believe they can evade liability for the defect once the purchase is complete. A material defect may grant you the opportunity to receive compensation ...

Do sellers have to disclose defects?

However, even if a seller uses a disclaimer, they must still disclose the existence of a material defect. A material defect is a serious issue that may be hazardous to the health and safety of the home’s occupants, or that may cause a buyer a substantial amount of money for repairs. A seller may hide the existence of a defect for several reasons.

Do you have to include contingencies in a purchase agreement?

Most real estate attorneys recommend including contingencies in the residential purchase agreement that will give buyers an out, and require any money held in escrow be returned to them (pending a review of the disclosures and the property).

Can you cancel a purchase?

Canceling the purchase could be a lot less costly and time-consuming than suing the seller. Laws in most states guarantee a buyer the right to cancel a transaction due to discovery of certain facts during the transaction.

Do you have to disclose property to prospective buyer?

Real estate disclosure laws. Real estate disclosure laws differ from state to state, but in most places in the U.S., sellers are required to disclose info to a prospective buyer that could affect the property value. That could be anything from a termite infestation to a property line dispute with a neighbor. If your house was built ...

Do sellers have to disclose something they don't know about?

That form will include negative information as well as basic facts such as the square footage. Sellers do not have to disclose something that they don’t know about. But if it can be proven that something was known and omitted, a seller can get in big trouble.

What is the best alternative to filing a lawsuit?

Another possible better alternative to filing a lawsuit is filing a claim with the agent’s, inspector’s, lender’s insurance company as that may end up providing some amount of recovery without the huge expense associated with an actual lawsuit. Real estate agents, home inspectors, and other parties to the real estate transaction often are required ...

What to do if broker is not interested in discussing the matter?

On the other hand if the broker is not interested in discussing the matter the next step should be to talk with an attorney.

What happens if you walk away from a contract?

If either the seller or the buyer walk away from the contract to purchase a home without relying on any of the contract contingencies a lawsuit may be needed to determine who gets any earnest money that was paid as part of the purchase. In most states the earnest money can only be released when the buyer, seller and both real estate brokers sign ...

Can a real estate agent sue a buyer?

When buying or selling a home a real estate agent is one of the more often seen person helping either the buyer or seller out and therefore more likely to be considered the target for a lawsuit. Those who are thinking of suing their real estate agent or the agent for the other side first need to look at if the agent actually did anything wrong.

Can a state agency recover money from a real estate agent?

Sometimes your local state agency may also have a source of funds that can be used to recover money due to the negligent actions of the real estate agent, inspector , appraiser or other real estate professionals. So be sure to check with state agency responsible for issuing licenses and regulating those professionals.

Can a lender add fees to a loan?

For instance a lender can add in extra fees to a loan that only benefits their bottom line, or the lender charged a slight higher interest rate so they could increase their commission on the loan. While those mentioned scenarios are possible the chances of successfully suing because of something like that is difficult.

Is it better to speak with a lawyer about a lawsuit?

Whenever considering the possibility of a lawsuit it is always best to speak with a local attorney who is an expert in that area of the law. Lawsuits can be expensive and time consuming actions that depending on how much damage was suffered may or may not make financial sense.

3 attorney answers

Please find a real estate lawyer and bring all your paperwork. The Middletown area has some decent practitioners. It may be helpful to call a lawyer in general practice. . .this is not an uncommon problem. Try the AVVO Find a Lawyer Tab. Good luck.

Sheldon Philip Starke

You need to talk to an attorney who knows RESPA, the Real Estate Settlement Procedures Act. As of January 2014, there are new regulations that are designed to prevent you from getting the runaround about loss mitigation and having to reapply multiple times.

Gregory Adam Wetzel

The CFPB was created in theory to protect the consumer and they want your complaint about your lender. Ensure you have filed your complaints with specificity here: http://www.consumerfinance.gov/complaint/ Keep in mind, they will gather those and potentially investigate the lender, but they aren't going to solve every situation.