What happens if a home seller doesn’t disclose previous flooding?
The information in this column is intended to provide a general understanding of the law, not as legal advice. Readers with legal problems, including those whose questions are addressed here, should consult attorneys for advice on their particular circumstances.
Q: My grandson bought his first house four months ago in southwest Houston. It was not disclosed that the house flooded in 2015. He would not have purchased the house had he known about the previous flooding. Is there any disclosure law regarding previous flooding when purchasing a house?
A: Assuming your grandson purchased his home using a realtor and with the paperwork handled through a title company, then yes, the seller would have been required to complete a form called a “Seller’s Disclosure Notice.”
This form contains a question about previous flooding.
If your grandson wants to pursue this matter, he should speak to an attorney and consider suing the seller. Of course, even if he has a slam-dunk case, he still needs to determine if filing suit is worth his time, effort, and money. The seller might be completely judgmentproof, meaning all of their property could be protected from judgments under Texas law.
It is possible your grandson bought the home from the estate of a person who died, or in a foreclosure sale, and if that’s the case, then the selling party would not have been required to complete a Seller’s Disclosure Notice. If that was the case, then your grandson probably has no remedy.
When purchasing a home, it is always a good idea to obtain a CLUE report. This is a report prepared by insurance companies and other companies (you can check for these online) which lists all insurance claims on the property for the past seven years. The claims history is obtained by looking at the Comprehensive Loss Underwriting Exchange (CLUE, and thus, the name of the report). However, if a homeowner made repairs from flooding without filing a claim, then nothing about that incident would show up on the CLUE report.
It is also a good idea to pay a professional to inspect the property to look for signs of prior flooding and for other defects.
Another really good way to know if a home has flooded is to talk to neighbors on the street. Simply by walking up and down the street, you can find out if the street floods or if any of the homes on the street have ever flooded.
Q: We live on Lake Houston. During Hurricane Harvey, our neighbor’s giant boat dock floated downstream and settled directly on our dock. What recourse do we have?
A: Contact your insurance company and ask your neighbors to do the same with their insurance company. Hopefully, between the two of you, there will be some coverage.
If not, it would appear you are stuck with the cleanup costs, plus the cost to repair or replace your dock, and if that is so, you should definitely try to get your neighbor to pay for half.