Bought a House and Found Major Problems? Here’s What to Do Next

What Happens If You Discover a Major Repair Issue After You’ve Purchased Your House?

Buying a home is one of the biggest financial and emotional investments most people make in their lifetime. After months of searching, negotiating, and finally closing on the property, it’s natural to expect a smooth start to homeownership. But what if, shortly after moving in, you discover a major repair issue—like a leaking roof, a cracked foundation, or a faulty electrical system? It can be a stressful and expensive surprise. So what are your options? What protections exist for buyers? And what steps should you take?

This article will walk you through what typically happens if you discover a serious issue after closing, what legal remedies might be available, and how to respond quickly and effectively.

Step 1: Assess the Problem

First, determine whether the issue truly qualifies as “major.” Minor cosmetic problems or aging systems that were evident at the time of sale likely won’t meet that threshold. A major defect usually involves something that:

• • Compromises the safety or structural integrity of the home,
  • Will require significant expense to repair,
  • Or was hidden and not disclosed during the sale.

✅ Kentucky Tom Pro Tip:  Examples include:

• • • • A crumbling foundation.
      • Mold in walls or crawlspaces.
      • Non-functioning HVAC or sewer systems.
      • Roof leaks leading to water damage.

Document the problem thoroughly—take photos and videos, and if possible, hire a licensed contractor or specialist to evaluate the issue. Their report will be critical for any legal or insurance claims.

Step 2: Review Your Purchase Documents

Next, pull out your purchase agreement and seller disclosure form. These documents outline what the seller told you about the property, and whether you agreed to any “as-is” conditions.

Most states require sellers to provide a Seller Disclosure Statement that lists known defects. In Kentucky, for example, sellers are legally required to disclose known issues with systems like plumbing, heating, air conditioning, roofing, and structural components—unless the home was sold “as-is.”

If the defect you discovered was not disclosed, and you believe the seller knew about it, you may have legal options. If it was disclosed but perhaps underplayed, you’ll want to review how it was worded.

Step 3: Check for Home Warranties or Builder Guarantees

Did your home purchase come with a home warranty? Many real estate agents include a one-year home warranty with the purchase, especially for older homes. These warranties typically cover major systems like plumbing, heating, cooling, and appliances. You’ll want to contact the warranty company right away to see if your repair is covered.

If the home is newer—typically under 10 years old—it may still be under a builder’s warranty, especially for things like structural elements or roofing. Review your closing documents to see if any coverage is in place.

Step 4: Reach Out to the Seller (Optional but Often Effective)

While not legally required, it can be worth reaching out to the seller if you suspect they may have known about the issue and simply didn’t disclose it. Some sellers may offer to help cover part of the repair—especially if they want to avoid being dragged into a legal dispute. Keep the conversation respectful and document all communications in writing.

Step 5: Was It Missed in the Home Inspection?

If you had a professional home inspection before closing, check the report. Was this problem mentioned and downplayed? Or was it entirely missed?

Home inspectors aren’t responsible for every hidden problem in a house, but if the defect should have been obvious during a reasonable inspection and wasn’t flagged, you might have a case for negligence. Inspectors carry Errors & Omissions (E&O) insurance, and you can file a claim if their oversight led to significant damage or cost.

Step 6: Know Your Legal Options

If you believe the seller knowingly failed to disclose a major defect, you may be able to file a legal claim. Common legal avenues include:

• • Fraud or Misrepresentation: You must prove the seller knew about the issue and deliberately withheld it.
  • Negligent Misrepresentation: Even if the seller didn’t act intentionally, they may still be liable for passing along false or incomplete information.
  • Breach of Contract: If the purchase agreement included language guaranteeing the home’s condition, you may be able to file a claim for breach.
  • Inspector Negligence: If the inspector missed a clear problem, they may also be legally liable.

State laws vary. In Kentucky, the statute of limitations for fraud is typically five years, but it’s best to speak with a real estate attorney as soon as possible to preserve your rights.

Step 7: Consider Small Claims or Civil Court

If the cost of the repair is under a certain threshold—often around $2,500 to $10,000 depending on your state—you may be able to sue in small claims court without hiring an attorney. If your claim is larger, you’ll likely need to pursue a civil lawsuit with the help of legal counsel.

Your attorney can help you gather the necessary evidence, such as:

• • • Seller disclosure forms.
    • Inspection reports.
    • Contractor assessments.
    • Photos/videos.
    • Communication records with the seller.

Step 8: Protect Yourself Going Forward

Discovering a major repair issue after buying a home is deeply frustrating—but it’s also a learning opportunity. For future purchases or advice to others, consider these tips:

• • Never waive the home inspection—even in a competitive market.
  • Hire a highly-rated, experienced inspector.
  • Review seller disclosures carefully and ask questions if anything seems vague.
  • Keep thorough records of all communications during the transaction.

For Your Consideration

Don’t Panic—Take Action

Finding a major defect in your home after purchase is upsetting, but you’re not powerless. With proper documentation, a good understanding of your rights, and help from a qualified real estate attorney or inspector, you can pursue resolution. Whether the fix comes from a warranty, a court ruling, or a negotiated settlement with the seller, you do have options.

Above all, act quickly. The more time that passes, the harder it becomes to prove the defect existed at the time of sale—and the fewer legal remedies may be available to you.

 

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