We discovered that our home is actually a "Modular Home" Can we sue the previous owners who lied to us?

Question

We purchased the home from a "For Sale By Owner" One of the first things I asked was" Is this a modular" and the owner said NO. On all of the paperwork they had filled out it said nothing about a modular home. We just started finishing the kitchen and started finding clues. (Clutch Head screws..etc..) Then 2 mocular homes went across the street and the excavator said that he put my house in also. Can we sue the previous owner for not disclosing the matter, or are we just out of luck? We want to sell but I dont know if I have to disclose the fact that it is a modular home

Answer 1

I've worked as a legal assistant but am not an attorney.

Your question can only be properly answered by an attorney practicing (duly admitted to the Bar) in your state as laws vary from state to state. However, I can offer some food for thought:

Can you sue? Most attorneys would probably say "yes - you can always sue," which is pretty true. The more important question is can you win? (The answer is again always yes, because our system often serves injustice, wihch is why we have appeals processes, so there's no such thing as a definite win or loss.)

Then the next question is "what are your odds of success?"

The best attorney can give you a better answer than a decent attorney, but unless your home is a several million dollar mansion, or there will be several million dollars in damages, don't expect the best attorney to be attracted to your case. You can always pay for time directly, but that's about $300+/hour for a good one, and no guarantee of success. Further, unless the seller's in the "business" of selling he probably does not have insurance, so even with a good case there's no real chance of settlement, so any attorney will realize there will be significant time spent on the case.

So, before going to a suit I suggest you consider the following:
1. Did you get the "non-modular" clause in writing?
2. If not, are there other (hopefully impartial) witnesses that can testify that the owner intentionally misrepresented himself?
3. Are you sure the other owner knew it was modular?
4. What damages have you suffered as a result of it being modular? Especially considering modular homes are frequently (almost always) higher quality than stick-built and endure better.
5. If you DO sue and win, will the time, pain, and aggravation, be worth it to you?
6. Will the financial consequences be easily absorbed by the seller or will he and his family suffer grim consequences? (Are you willing to live with your conscience if his kids can't go to the doctor or dentist anymore?)

An attorney can give you a definite answer, but you should give some thought to those questions.

Answer 2

The fact that there is nothing in writing specifically stating whether or not the home is a modular, may hurt your case.

As previously mentioned - knowingly misrepresenting something is quite a bit different than unknowingly misrepresenting. Proving the misrepresentation, again is something else.

What is a modular or mobile home or prefabricated home may suggest different things to different people.

When you purchased, the home inspector (you did have a home inspection didn't you?) should have told you what the structure of the home is. If you were concerned back when you purchased a home that this was a modular you should have practised your due diligence and confirmed to yourself that it wasn't.

Buying a "For Sale By Owner" is not the same as having a REALTOR represent you and this problem would probably not have occurred if you had representation.

What about the Lawyer you used to write the contract. Were they aware of your concerns about the building?

Now that you are aware that this home is a modular you should disclose this to Buyers when it comes time to sell.

Answer 3

If they knew that it was a modular, then you might be able to rescind your contract due to misrepresentation and possibly collect damages. But if you continue to act as if you want to own/live in the home, then you will ratify the contract, which will prevent you from receiving damages from the previous owners.

If they didn't know that it was a modular, then it's just a mutual mistake, which may let you rescind the contract but collect no damages (except what you paid for the house). You may want to seek legal counsel.

Answer 4

My first piece of advice is to consult an attorney. That said, most state require any and all real estate disclosures to be made in writing. The fact that you asked and the seller answered a question may not be enough if you didn't get it in writing. The fact is over 70% of all real estate related lawsuits are over seller disclosure. So call an attorney and I wish you luck!

Answer 5

First of all, it's going to depend on what the laws about disclosing things like that are in your state. Every state has different real estate laws.

You might want to find an attorney that specializes in Real Estate and ask. And I wouldn't compound the problem by not disclosing it yourself when you sell it.

Answer 6

Can you sue? Yes (in some circumstances) You will need to contact your attorney - did the owner provide a disclosure form (is that even required in your state) - did you have the home inspected? - the "half ***" bandaids would prove the owner knew about the problem

Answer 7

if the deed say real estate property them its considered a house
you can make any modular home in to a House by fixing it to a permanent foundation if its affixed then the previous owner might not have known

Answer 8

Why ask this question on the internet?
Why not ask a Real Estate Lawyer?
wouldn't that make more sense than asking complete strangers that know nothing about your problem?
No wonder you are having problems!

Answer 9

Sorry he lied to you go to a restate Lawyer right away and get help with this he can,t get away with this. good luck