Q: What recourse do I have for nondisclosure and misleading advice on a faulty septic system during home purchase?
I bought a home in North Carolina two years ago, and the previous owner assured us there were no issues with the septic tank. However, upon selling the home, the new buyers' inspection revealed major septic system issues. We did not have a septic inspection during our purchase because our realtor did not recommend it. As first-time septic tank owners, we were unaware of its importance beyond a home inspection, which never mentioned the septic tank. We obtained a disclosure from the previous owner stating no issues, then paid $5,000 in credits to the new buyers for repairs. We possess inspection reports outlining these problems. What recourse do I have against both the previous owner for nondisclosure and our realtor for not recommending a separate septic inspection?
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A:
In North Carolina, you may have recourse against both the previous owner and your realtor for the issues with the septic system. If the previous owner knowingly failed to disclose problems with the septic system, this could be considered fraudulent misrepresentation or a violation of disclosure laws. The disclosure form you received, stating no issues, could be challenged if the owner knew about the problem but failed to disclose it.
Regarding your realtor, you could argue that they had a duty to recommend a septic inspection, especially since they should have known about the importance of such an inspection, particularly for first-time septic tank owners. If your realtor neglected to advise you on this, it could be a case of negligence on their part. While realtors are not responsible for conducting inspections themselves, they are generally expected to guide clients on important aspects of the home-buying process, like septic systems.
To address this, you should consult with a real estate attorney to assess your potential legal actions against both the previous owner and the realtor. You might be able to seek compensation for the repairs or damages, or even pursue a claim for misrepresentation. Legal counsel can help you explore your options and guide you through the process of filing a complaint or taking legal action.
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