Canadian Realestate Magazine forum is the place for positive industry interaction and welcomes your professional and informed opinion.

Bought a 'lemon' house

Notify me of new replies via email
Kellie P | 09 Jun 2015, 08:26 PM Agree 0
I'm posting this for my brother and sister-in-law. They bought a home in late September of 2014. Had a home inspection done, everything was A-1 and so they went forward and secured their mortgage, and bought the home! All was happy and wonderful, until this winter. During the winter part of the deck came loose. A contractor came to check things out and that's when the trouble started. Underneath the siding of this 10 year old home, was rotten. The deck was built incorrectly, the framing and structure was done incorrectly, and its a nightmare for them. The estimate to get the house fixed up, is looking to be in excess of $150,000! This is on top of their existing mortgage of 200k. A private contractor built the house, and has passed away. The issues weren't able to be 'seen' by the inspector, so that's out. They can't get approved for another mortgage, insurance won't even send someone to look at the home, and they have no idea where to go from here. They both work at great jobs, but my brother works out of province. They are a young couple that live their home, but they are extremely stressed and can't get an answer on resources to help, if any. Can anyone here steer me in the right direction for them, either to repair the home, or what's involved with walking away from it?
  • jim | 14 Jun 2015, 05:06 PM Agree 0
    If they didn't love it, cut losses sell as is for the value of the land.
    150k sounds expensive, presumably includes deck replacement. Tough being out of province. If finance, insurance or selling at a loss isn't an option the only thing is to tackle it. I'd arrange time off work. Forget about the deck, demolish and dump it. (Or give away reusable material). Then remove siding, open up the wall below deck level to begin with that's probably the entry point for water. Keep removing siding til it's evident there's no water damage. Remove wet insulation. Measure timber required to replace bottom sill plate, studs,etc. Rent shoring poles to shore up top plate as the studs get removed. Drywall & vapour barrier will need to be removed. Basically work your way along the wall replacing compromised timber. It's probably all a contractor will do. Eventually replace siding, new drywall etc. For the owners it means buying tools, a steep learning curve, recruiting help and a necessary labour of love.

  • Eric | 14 Jun 2015, 08:05 PM Agree 0
    I don't know why going after the Home Inspector is not an option. That's exactly what their job involves, defect recognition. They all have E&O coverage. That is their best bet. Don't be deterred by any limited liability clauses in their contract. I also, seriously doubt it will cost 150K, They should get several more quotes.
Post a reply