Location: Georgia (Columbia county)
I’m trying to figure out if I actually have a strong legal case here or if I’m overthinking it.
I recently bought a home in Georgia for about $255k. It was a flipped house that had previously been involved in a pretty serious fire, so one of my biggest concerns when buying it was making sure everything had been properly rebuilt and inspected. The seller is a mortgage broker/loan officer with a lot of experience in real estate, which honestly made me feel more comfortable at the time.
On the seller’s disclosure, he basically indicated there were no major issues and didn’t disclose any unpermitted work. After moving in, I started noticing problems with the master shower leaking into the ceiling below. I had restoration companies come out, and they found that the shower appears to have been built incorrectly (possibly missing proper waterproofing).
That’s when I started digging into the history of the house more. I contacted the county and found out that the only permits on record are an electrical permit from 2025 and a window permit from 2019. That’s it. No plumbing permits, no building permits, nothing that would line up with what looks like a full renovation.
What makes this worse is that I have photos from before the flip, and the house was basically down to the studs after the fire. From what I understand, things like installing new showers, modifying plumbing, and replacing insulation would normally require permits. It doesn’t really add up that all of that could have been done properly without any permits at all.
Another thing that stood out is that the seller was fairly responsive at first, but once I started asking specifically about permits, contractors, and licensing, he basically went quiet.
At this point, I’m dealing with a leaking shower that needs to be repaired, the possibility that there’s other unpermitted work hidden behind walls, an insurance claim that could raise my premiums, and time I’ve had to take off work to deal with all of this. I’ve also already had to consult with an attorney.
The attorney (who is also a judge part time) mentioned that I might have claims for misrepresentation and possibly fraud based on the disclosure, and even brought up rescission as an option. I’m just trying to get a realistic sense of how strong something like this actually is.
Does this sound like a situation where a misrepresentation or fraud claim would hold up, especially with the permit issue and disclosure? How much does an “as-is” clause really protect the seller in a case like this? And is it typical for something like this to settle, or do sellers usually fight it out?
I do have documentation including before and after photos, confirmation from the county about permits, contractor assessments, and text messages with the seller. I just don’t know if this is as strong as it feels or if I’m missing something.
Seller was dishonest on sellers disclosure
byu/Thick-Performance492 inRealEstate
Posted by Thick-Performance492
9 Comments
Bottom line is that you likely have no recourse. You should have done more extensive due diligence _before_ purchasing.
Did you not check the permits prior to closing? My home inspectors looked up permits before they even came to the house, as did I.
Depends on what the seller knew. The seller may have been told when they purchased the house that it had all needed permits and they didn’t investigate further. If leaks weren’t present during the inspection the seller wouldn’t have known and they may have just developed after the sale.
A real estate lawyer can probably advise if this might be worth pursuing. Or not. Good luck
Did you get an inspection? While you were under contract, what due diligence did you conduct to verify the status and condition of the property, knowing it had been through a fire and was a flip? Did you raise concerns about the quality of the remodel work with your agent and/or attorney while under contract?
You said the seller stopped cooperating once you started asking about permits and contractors, etc., – was this while you were still under contract or after you closed and started having problems?
Start with taking all the proof you have to the state real estate board and telling them what this person did.
Georgia is a caveat emptor state, and since the property was sold “as is”, it may be difficult for you to get traction in a lawsuit.
Here’s your challenges:
Sellers have to disclose known latent defects but you’d have to prove that the seller knew the shower was leaking.
The seller could argue they hired a contractor and assumed permits were pulled. You would have to prove that he knew the contractor(s) weren’t acting lawfully.
Permit records are public. Before you purchased the property you should have investigated whether the renovation projects were properly permitted.
“…rescission as an option”…well, I suppose it’s technically an option, but I’d look for a lot more evidence about the likelihood before spending money on attorney fees. Usually, the buyer has to claim fraud immediately after discovery and file a lawsuit.
You might be able to sue for damages. What does your agent say?
You should consult with an attorney on the specifics if you want to pursue this.
Generally to prevail you need to prove to a judge the seller was aware or reasonably should have been aware of a latent, material, defect. And they omitted or lied on the disclosures. And prove your damages.
If the seller flipped the home and never lived there it can be difficult to prove they knew the shower was leaky or defective.
Latent means it was not something you or your home inspector should have noticed. Permit related issues are public record. A leak painted over or concealed is latent.
It needs to be a material defect. And that means proving it existed before you closed, it isn’t a new issue.
You also need quantifiable damages. So generally you need to first make the repairs. A leaky shower that can be fixed without a lot of water damage is probably not worth pursuing. If the damages are under $15k or you could pursue this in magistrate court(small claims) so you don’t need to pay an attorney $400 an hour to go to court. But ask your attorney about prevailing party attorney fee agreements, about any mediation you may have agreed to in your purchase agreement.
You’re wasting your time. Fix your shower and move on.
In some states a seller can be forced to take a property back when there is material misrepresentation. I’d make them take it back in this case if allowed in your state.