Buyer Beware
Usually this time of year Realtors start receiving phone calls from first time home owners experiencing water seepage in their basement. Here is my view - basements and window wells are holes in the ground so we shouldn't be surprised that water will flow to the lowest point, therefore it is probable you will find water in basements if appropriate measures have not been taken to prevent it from happening. Many times the new owner has forgotten over the winter to re-attach drain pipes to the eavestroughing so that the snow melt is carried away from the foundation. Sometimes, they have created a new flower bed against the foundation that now acts as a perfect sponge. Other times, the window well is full of debris or has been jarred away from the foundation by a lawn mower.
This is not to say that buyers shouldn't exercise great care when purchasing a property. A "material latent defect" is one that is not discoverable through the exercise of reasonable vigilance during an inspection and responsible persons would agree is a significant shortcoming in a property. Examples of such defects would include those that would render a property dangerous or potentially dangerous to the occupants; makes it unfit for habitation; or is unusable for the purpose the buyer has made known for which he is purchasing it.
For example, the seller does not disclose to the buyer that there has been seepage or sewer back up into the basement for which proper remediation was not undertaken. The buyer, once occupying the residence, finds mould inside the basement walls and it takes significant effort and expense to make it safe for his family.
Common sense does have to apply however. If you buy a home built in the middle of the last century or older it is quite likely there is no weeping tile around the footings. In those times, if there was a concern regarding seepage, the owner / builder installed a sump pump under the basement floor. Often, basements were viewed only as space for storage, cisterns, furnaces, hot water tanks, or a small workshop. It was not anticipated someone would actually "live" down there. Over the years, successive owners may have put up some exterior and interior walls. The concrete foundation walls, which were likely hand poured on site, may have also cracked. Sidewalks were likely placed on top of the backfill along the outside perimeter of the house, and now are sloping towards the exterior wall. All of this leads to unhappy surprises when extra moisture is present.
Another example is a cracked heat exchanger in an older furnace. We always recommend a professional inspection if the heating unit is over ten years old. Each year, our team finds at least one or two. Often, the seller wasn't even aware of the problem but in the right conditions it could be fatal. Bottom line, always make your offer to purchase conditional on a satisfactory inspection of the property by appropriate qualified individuals - home inspectors, electricians, heating specialists, etc.
Sellers cannot conceal defects and attempt to mislead buyers about the condition of their properties; they must honestly answer questions they are asked. If a seller knows that whenever it rains his house leaks water and repairs are necessary, but fails to disclose the defect, they can be held accountable in a court of law. In one case in NW Saskatchewan, the seller knowingly built a garage over a gas line and didn't tell the buyer. Fortunately the buyer had purchased title insurance. The title insurance company corrected the problem to the satisfaction of the gas company, and then proceeded to successfully sue the previous owner for the costs.
Vern McClelland is associate broker with RE/MAX of Lloydminster. If you have questions or comments on this article or other real estate matters, he can be reached at 780.808.2700 or through the McClelland Group website www.mcclelland.ca
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