Don’t Risk a Lawsuit. Disclose!

Clients I helped buy a house in Arlington Heights in January called me yesterday with am interesting story!

Back when they had the home inspected, the inspector, Kevin Fulara, recommended that the furnace and air conditioner be replaced. For the price they were paying, the buyers weren’t expecting a heating and cooling system that might likely need to be replaced in the next year. The buyers asked the sellers to replace the furnace and air conditioner. The sellers said, “No”, claiming that they worked. The attorneys, the listing agent and I went back and forth negotiating for our clients. In the end, the sellers agree to replace the furnace and air conditioner.

This week a 10-year-old neighbor girl was at the house playing in the yard with the new owners’ dogs. At one point, the girl turned to one of them and asked if they had the “heater” for home replaced. With I’m sure a surprised look on his face, one of the owners, Michael, replied, “Yes.” Before he could say anything more, the 10-year-old said she knew that the home’s “heater” didn’t always work.

If the 10-year-old living across the street knew the home had heating problems, you can be certain that the sellers knew it. Yet, they didn’t disclosure this on their Residential Real Property Disclosure Report. The required report has sellers answer “yes”, “no” or “not applicable” to several statements including: “I am aware of material defects in the heating, air conditioning or ventilation systems.”

It’s a good thing the sellers replaced the furnace as part of the sale. Otherwise, my buyers now armed with evidence that the sellers knew there were heating problems might have taken legal action had the furnace not been replaced and then had problems.

Home inspector Kevin Fulara with Top to Bottom Inspections can be reached at 224.381.4319. Good catch, Kevin!