LAWSUITS WHERE HOME BUYERS SUE SELLERS FOR FRAUD
The problem begins after the buyers move in to their new home and discover problems that were not disclosed to them. Depending on what the problem is and how much it will cost to repair, the buyers contact their real estate attorney for help. Many real estate attorneys do not get involved with litigation, and so they refer their buyers to an attorney who has experience litigating these kinds of disputes.
The easiest and least expensive way to get the problem resolved is for the attorney to write a letter to the sellers describing what’s wrong and asking for money. If the sellers refuse, the next step is to decide who to sue and what to ask for.
WHO TO FILE A LAWSUIT AGAINST
The obvious answer is the sellers. However, depending on the facts, it sometimes is appropriate to include the real estate agents and the buyer’s home inspector in the lawsuit.
WHAT TO ASK FOR
In most cases, the purpose of the lawsuit is to recover enough money so the buyers can pay to get the problem repaired. In some cases, however, money is not an adequate remedy, and so the buyers ask for rescission. If rescission is ordered by the Court, the buyers give the house back to the sellers, and the sellers return to the buyers the money the buyers paid for the house.
CLAIMS OF FRAUD
Fraud can arise from fraudulent concealment or fraudulent misrepresentation.
To prove fraudulent concealment, the buyer has to show that the seller took action intended to prevent (and which actually did prevent) the buyer from discovering the damage. This can occur when the seller takes action to conceal the defect. However, it can also occur when the seller takes action to dissuade or prevent the buyer from making an investigation that a buyer would have made and which would have disclosed the defect.
To prove fraudulent misrepresentation, the buyers must show the following 5 things:
(1) the seller made a substantial, material misrepresentation
(2) the representation was false
(3) the seller must have known it was false
(4) the seller made the representation with the intention of inducing the buyer to act upon it
(5) the buyer did act in reliance on the statement and was harmed as a result.
If you believe you've been the victim of fraud in connection with the purchase of your home, contact a Delaware real estate attorney to discuss your options.
