REAL ESTATE Q&A IS SELLER LIABLE FOR SINKHOLE AT MY NEW HOME?

Q: We bought a house with a major problem, a covered- over sinkhole not disclosed to us. No one wants to help us with it; our agent, the seller, every- one has turned his or her back. The house is so torn up to fix the problem that we have been in a hotel. Is there anything we can do? — Edythe

A: Most people have heard the Latin term “caveat emp- tor” (let the buyer beware) and think that it is up to the buyer to find all the problems with a new home. In reality,

this is only partly true. Buyers are responsible for inspecting their prospective new home and finding all prob-

lems that can reasonably be found. But some problems cannot be found with normal inspections done when buying a house because they are hidden. These are known as “latent defects” and can include cracked foundations, leaky pipes in walls, sinkholes — or even the fact someone was murdered in the home.

If sellers know of any such latent defects, they are legally required to disclose them to prospective buyers, and if they do not, they can be held liable to pay for fixing the problem.

Sellers are only liable for latent defects if they actually knew of them. So, for example, if this is the first occurrence of a sinkhole in the area, the seller may not have known of the issue and won’t be held responsible for not disclosing it. It just makes sense that someone cannot be liable for not disclosing a fact he or she did not know.

You should first look to your homeowner’s insurance coverage to get help repairing your home. Unfortunately, if your policy is like many, sinkholes may not be covered. If this is the case, and if you believe that your seller hid the issue from you, then consider a lawsuit to hold that person liable.