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Exeter, NH asked
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Construction Law, Consumer Law, Contracts, Civil Litigation and Real Estate Law for New Hampshire
Q: Can I sell my manufactured home with a pending lawsuit due to defects?
I purchased a new construction manufactured home in July 2024, which has numerous defects covered under warranty that neither the installer nor the manufacturer have repaired. They are blaming each other for the issues. I filed a civil suit in January 2025 for breach of contract, negligence, and Deceptive Trade Practices. Now, I want to sell my home but am concerned about the implications of the pending lawsuit. Due to the home's defective condition, I've been informed that I may have to sell at a loss. I also recently had to pay out of pocket to repair the roof, which has resulted in internal water damage. I have been unable to obtain legal representation and have been seeking advice from the NH Bar's monthly dial-an-attorney service. Can I sell my house with this pending civil suit, and what should I consider in this situation?
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James L. Arrasmith
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You can sell your manufactured home while a lawsuit is pending, but you’ll need to be prepared for extra steps. Any buyer has the right to know about material issues affecting the property, including unresolved defects and active litigation. If you don’t disclose the lawsuit, you risk future legal problems with the buyer, so transparency is critical.
Selling at a loss is a possibility if the defects are significant, but your pending case could help you recover damages later. You may want to make clear in the sales documents that the lawsuit remains your property and that you are not transferring any claims to the buyer unless you choose to assign them. This way, you can continue to pursue compensation for the defects even after the sale.
It’s also important to consider how repairs, warranties, and the water damage factor into the sale price. Having records of the roof repair and damage will help in setting expectations with potential buyers. While the legal process may take time, selling now is an option as long as you disclose everything honestly and protect your right to continue the lawsuit.
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