What should I do if I find a defect in my new home?

Ideally, home defect issues should be worked out before you get to the closing, whether it’s a cracked foundation noted during the inspection or water damage discovered during your final walk-through. At this point, your agent should work with the seller’s agent to explore different options toward recourse.

What happens when defects are discovered after a sale?

When Home Defects are Discovered After the Sale The laws always depend on the state you live in. Usually, after the escrow is closed, a buyer might be limited to recovering money for any defects discovered. Escrow is your deposited funds promising you will buy the home. These funds will be transmitted from the escrow account to the seller.

What happens if there is a latent defect on a house?

Depending on the circumstances, if a latent defect is found, the buyer will be able to cancel the contract or claim a portion of the purchase price. The law prescribes that the buyer will not be allowed to simply obtain a quote for the repair and then deduct it from the purchase price, paying a lesser amount.

What kind of defects can be found in a house?

Cosmetic flaws such as uneven paint on the wall, nail holes, dent on the table and the likes might not require immediate renovation but critical home defects like cracks on the wall, watermarks, leaking faucet, hollow tiles and door problems will necessitate prompt repairs to prevent future problems from haunting you back.

Where can I find out if my house has defects?

A home inspection — by a trained and certified inspector — is your best bet for discovering these defects and making a smart buying decision. Visit HomeTeam Inspection Services to find a reliable inspector in your area. For more information on home inspections, visit the American Society of Home Inspectors.

What is a material defect in a house?

A material defect is not chipped paint in the garage; rather, a material defect is something like an extensive termite problem or a collapsing roof. The key, however, is that the seller must have known about these material defects at the time of sale, and failed to disclose them to you.

Do you have to disclose defects on your home?

In most states, home sellers must complete a standard form disclosing their home’s known defects. Some states are much more strict about this than others. It may be smart to know how much disclosure your seller is obligated to provide, and understand what they don’t have to tell you.