Q: Is it possible for a judge to rescind a contract 3 years after the sale if they lied in disclosure?
We just found out the sellers lied on disclosure when they said they were not aware of any other foundation problems. We know the were aware, because the contractor that repaired the 3 minor cracks for them has this huge one in his report. He made the repairs and then the sellers finished the basement (concealing the crack) about a week later. We also believe they lied in the contract about having a permit for that work, as well as when they said they did not know of any water leaks or attempt to fix any. We also found a pipe with what looks like epoxy around it with water stains. Since tearing down drywall, we had an engineer out. This foundation diagonal foundation crack is bowing and showing lateral movement which has also caused issues to the rooms above it.
At this point, we just want out of the house. We never would have bought it had we known the extent of damage and it is going to be extremely hard to sell. We actually believe that we will lose money selling it.
A:
You are unlikely to get the deal rescinded at this point and I'm not sure what good that would do for you now that you've already paid and probably obtained a mortage.
You should consult with an attorney who is familiar with failure-to-disclose litigation. In addition to suing for breach of contract and perhaps fraud or misreprestation, at attorney could assess whether to assert a claim under Missouri's consumer protection statute the Merchandising Practices Act (MPA). I like the MPA beause it allows a plaintiff to seek not only actual damages (what you paid minus what the property was actually worth with its problems), but also punitive damages. The court may also award reasonable attorney's fees to the prevailing party.
Some attorneys take MPA cases on a contingency or percentage basis, so you have little to lose by at least scheduling an appointment to have an attorney review your contract and other documents and to discuss your options.
I'm sorry you got taken. If the facts are as you describe, it seem like you would could assert some strong claims.
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