The Seller of My Home Failed to Disclose Water Damage. What Now?

Did you just buy a new house only to discover that your seller didn't disclose water damage? Here’s what you need to know to take action.
You’re deep into the honeymoon phase with your new house — picking out wall colors, rearranging furniture, playing with your décor options — when suddenly, disaster strikes!
Perhaps you discover discoloration in some tucked-away corner, or you hear mysterious dripping sounds in your walls, or a sudden rainstorm reveals a leaky roof. Once you investigate, it becomes clear that this water damage problem is an old one, and your seller should have disclosed it when you bought the house.
That’s what happened to one of Maryland-based agent Greg Cullison’s clients: “I had a buyer who bought a renovated home from a house flipper, and the seller signed a disclaimer that there were no latent defects. Shortly after moving in, the buyer’s child became ill and, after a couple of visits to the doctor, it was determined that the property had mold.”
This seems like an obvious failure: The seller didn’t disclose existing water despite knowing about it, period. But unfortunately, it’s not enough to just know in your bones that your seller failed to disclose pre-existing water damage. If you intend to collect from the seller, you have to be able to prove it.
Let’s walk through what it’ll take to build your case…and whether or not it’s worth pursuing.