Real Estate Agents or Real Estate Legal Scholars

[kwolf68]

I need advice if you can offer it.

Facts of issue

-I bought house due to close Nov 24 in Maryland

-Last week found out our insurance company would not cover us due to the seller filing two claims v. house in 2 years-both for water damage (one in the basement, one upstairs that centered around faulty appliances and/or poor installation)--one claim was for 3500 the other for 1800. In the upstairs leak the entire floor had to be replaced in one room.

-Most major companies won't cover

-Selling agent found some companies that will cover at a higher price and with exclusions.

-Selling agent (and buyng agent) says we are obligated to take whatever insurance we can get and we are in breach.

-On Disclosure seller didn't mention anything about "leaks in basement" but have conflicting interpretations on this.

-I have a friend who is a lawyer that has been working with me...though he's not a real estate lawyer.

-Our agent (and our broker) is aggressively trying to get us to close deal.

-I am concerned about pre-existing conditions that can not be determined at this time. I would have never bought this house if I had known I could not get the insurance I expected.

-I want out. I put up 2000 deposit. Seller says they won't let us out and it could cost us.

-Again, not sure what my legal rights are.


Advice? Tips? Laws? Thanks a million

[Don_G]

1. Check With Your State's Disclosure Laws

In my state, it's mandantory for the seller to inform the buyer of any prior problems or pre-existing conditions. If not disclosed, the buyer has the legal right to back out of the deal.

The laws vary from state-to-state, so you'll have to check first.

[kwolf68]

2. Yes

Maryland does have Disclosure Laws, but I am having a hard time trying to figure out if telling me about the 2 water related claims should have been covered in the disclosure.

The seller did fill out a Disclosure, but did not alert us of the two claims of question.

[Don_G]

4. Better Ask A Lawyer Then

A hundred bucks might save your down payment and let you find a better house.

[kwolf68]

3. Damn

.