Leak Discovered after Closing

Why a Basement Leaks and How to Fix it… | U.S. Waterproofing


One of the walls in the basement was covered by some kind of furniture and home inspector did not want to move anything (said something about getting hurt or liability).

The deal was closed about 6 weeks ago.

In the last few days, the basement got flooded due to the issues with that specific wall (cracks in the wall).

What are the Buyers’ rights?


The transaction was completed 45 days ago and apparently, there is now a leak.

Basically, caveat emptor applies and the Buyers had an opportunity to inspect. The inspection condition was satisfied and the deal was completed.

The Sellers’ obligation to disclose is restricted to known, material latent defects. Obviously, they didn’t disclose. So, either they didn’t know anything or they actively took steps to conceal this fact. Active concealment would constitute fraud. The Buyers would have a remedy for fraudulent concealment.

It seems peculiar that the furniture would be piled up in that one spot. The Buyers’ insurance company could check to see if there was a prior claims record. If there was, that would be proof that the Sellers knew, otherwise this is very difficult to prove. In addition to a potential claim against the Sellers, the Buyers may have a claim against the Listing Agent in negligence.

When you examine the crack it will have to be determined when this may have occurred. If it’s new, then the Buyers are stuck.

Brian Madigan LL.B., Broker


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