: Most states require sellers to provide a Property Disclosure Statement. If a seller intentionally hid a "latent defect" (a problem not easily seen during a standard inspection), they may be liable for fraud or misrepresentation .
Beyond litigation, there are practical steps to mitigate the financial blow of a lemon house.
If you find yourself in this situation, acting quickly and methodically is essential:
: Real estate agents have a professional duty to disclose known material facts. If an agent was aware of a defect and remained silent, they (and their brokerage) could be held accountable. Financial and Protective Options
: Hire independent contractors to determine the cost of repairs and whether the damage appears "old" or "masked."