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Finding hidden defects upon closing: What to do?

On Behalf of | Nov 27, 2024 | Real Estate Disputes |

Buying a home is a significant investment, and the excitement of closing on a property can quickly turn to frustration when hidden defects arise. Texas law provides protections for homebuyers who find themselves in this unfortunate situation. You must understand your rights and the legal remedies available to address these issues effectively.

What legal actions can you take?

When you discover a hidden defect after closing, you may have several legal options:

  • You can cancel the contract through rescission and return the property to the seller.
  • You can demand repairs or replacements for the defective part of the property.
  • You may also seek monetary compensation. Texas law allows for recovery of costs associated with repairs, diminished property value, and, in some cases, punitive damages.

Under the Texas Property Code, sellers must disclose known defects to potential buyers. If a seller intentionally conceals a defect, the buyer may have grounds for legal action based on fraud or misrepresentation.

What defenses might sellers use?

Sellers can employ several defenses against claims of hidden defects:

  • “As is” clauses: Many property sales include an “as is” clause, which can limit the seller’s liability for undisclosed defects. However, this does not protect sellers if they knowingly conceal defects.
  • Lack of knowledge: Sellers can argue they were unaware of the defect, especially if it was invisible.
  • Waiver by buyer: If buyers knew about the defect or waived their right to inspection, it might weaken their claim.

Understanding these defenses can help you evaluate the strength of your case before proceeding.

What steps should you take to protect your rights?

Discovering hidden defects can be a setback, but prompt action is essential to ensure you get what you pay for, especially if the sellers feign ignorance. Documenting the defects, gathering evidence and seeking professional opinions can strengthen your case. While Texas law provides buyer remedies, the legal process can be complex. Reach out to legal support so you can understand your options and pursue the most appropriate course of action for your situation.

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