$120,000 Undisclosed Termite Damage Settlement to Homebuyer

After filing a lawsuit and following a mediation, Whitney, LLP recovered a $120,000 termite damage settlement on behalf of our client (“Buyer”) who purchased a home in Westminster, MD with severe undisclosed termite damage

Maryland home buyers have many legal rights, including after closing on a home and discovering hidden problems.  Hidden termite damage is a serious problem and happens often throughout Maryland.

Whitney, LLP’s hidden termite damage lawyers have experience bringing claims and recovering compensation for homeowners who find undisclosed termite damage after closing.  Using evidence left in the house, such as new wood, and date-stamped electrical wires and drywall, as well as invoices, we are often able to prove that the seller knew about the termite damage and made attempts to hide it.

This blog explains on of our undisclosed termite damage cases that occurred in Westminster, Maryland, and the settlement we recovered after filing suit.

If you moved into a new home and found a termite infestation or termite damage, you have legal rights and may be able to to recover compensation.

Read about Whitney, LLP’s blogs about some of our past termite damage cases and termite damage settlements.  

Watch our videos about termite damage on our YouTube Channel.

If you purchased a home and found a hidden termite infestation or termite damage, contact Whitney, LLP for a consultation at 410 583 8000, or use our Quick Contact Form.

Finding Undisclosed Termite Damage after Closing

When a new home buyer finds hidden termite damage after closing, the new home buyer has many legal rights and can bring legal claims against the seller and other responsible parties to recover compensation for their damages.  Damages for undisclosed termite damage claims can include economic damages for loss of use and enjoyment, the costs of repair and consequential expenses related to the disruption caused by exploratory demolition and repair of the home and attorney’s fees.

Disclosure Statement Requirements

In December of 2023, the Property was offered for sale subject to the Maryland Residential Property Disclosure Statement (“Property Disclosure”).  When a Seller elects to complete the Property Disclosure, the Seller is required to disclose defects, including latent defects and other material information about the condition of the property, actually known by the Seller, based on the Seller’s personal knowledge, in response to nineteen (19) specific questions.  The available boxes to check are “Yes”, “No”, “Unknown” or “Does Not Apply.”

Seller’s False Disclosure Statement

In pertinent part, the Seller’s Property Disclosure stated there was “No” Wood-destroying insect infestation or prior damage, and failed to respond to the questions whether there were any treatment or repairs, and any warranties from prior service. 

Seller further omitted to disclose the hidden termite damage in answer to Question No. 19 which inquired: “Are there any other material defects including latent defects, affecting the physical condition of the property?”

The Disclosure Statement, signed by Seller represented that: “The seller(s) acknowledge having carefully examined this statement, including any comments, and verify it is complete and accurate as of the date signed. The seller(s) further acknowledge that they have been informed of their rights and obligations under § 10-702 of the Maryland Real Property Article.”

The representations in the Property Disclosure were intended by Seller to be relied upon by Buyer, and Buyer in fact relied on such Representations in deciding to make an offer on the Property for a purchase price of $352,000.  Buyer believed that they were buying a functional, livable home, free of termite damage.  Buyer would soon discover that the Seller had lied.

Buyer’s Post Closing Discovery of Undisclosed Termite Damage

Prior to moving in, Buyer wanted to renovate the kitchen and perform some cosmetic improvements. Upon removing the kitchen cabinet, Buyer discovered termite damage. Buyer proceeded to open walls and ceilings and discovered severely termite-damaged wall and ceiling framing directly adjacent to randomly placed new wood in a haphazard attempt by Seller to sister some badly deteriorated wood. However, nearly all of the damage was not repaired, and various areas were deliberately concealed and covered over with new drywall.

A pest control contractor inspected the Property on April 1, 2024 and confirmed a termite infestation. Termite damage was found throughout the home. Termites had effectively destroyed wood beams, floor joists, subflooring, the sill plate, wall framing and attic rafters, representing a termite infestation of about 5 to 10 years duration.

Seller’s Actual Knowledge of Termite Damage

Investigation conducted by Whitney, LLP uncovered that prior to purchasing the Property, Seller was provided an Inspection Report by a licensed home inspector.  The Inspection Report noted termite damage to the 2 x 10 wood joists in the crawl space as well as termite activity in the attic.

The inspector recommended a structural engineer to evaluate all aspects and structural integrity of the home, give recommendations and to consult a qualified contractor for repair/replacement as needed.  Additionally, photographs of the severely termite-damaged joists were provided to Seller prior to their purchase of the Property.

Because the Seller lied about the hidden termite damage and failed to disclose it, they had significant liability for damages.  Faced with evidence of their dishonesty, the Seller agreed to pay $120,000 to compensate the Buyer.

Termite Damage Can Be Devastating

Termites are highly destructive insects.  Upon entering a home, they continuously eat and hollow-out wood, including sill plates, beams, floor joists, band boards, plywood subflooring, wall stud framing, headers and rafters, and can cause severe structural damage. Long term termite infestations and damage can place a home at risk of collapse and place occupants at risk of falling through a weakened floor. The surface of infested wood members often shows no outward signs of activity, and undisclosed termite damage often is hidden behind fresh paint, drywall, floor coverings or the facade of the home.

Treatment And Repairs Are Necessary

A long-term termite infestation requires not only proper treatment, it further necessitates repair of the termite damage.  Evaluation of the termite damage required Buyer to open walls and ceilings to determine the extent of hidden damage and need to repair. Due to the extensive damage, expensive repairs are required to restore the Property.

Daniel W. Whitney, Jr. and Daniel W. Whitney of Whitney, LLP

$120,000 Undisclosed Termite Damage Settlement – Whitney, LLP

Pursuant to the Release and Settlement Agreement which the parties entered following a Mediation, Seller agreed to pay Buyer $120,000.  Of course, all cases are different, and past outcomes do not guarantee future results.

If you discovered termite damage after closing, you have legal rights and may be able to recover compensation for your damages.  Whitney, LLP’s Maryland termite damage lawyers have experience representing homebuyers in claims against sellers, real estate agents and WDI companies involving hidden and undisclosed termite damage. 

Contact Whitney, LLP for a consultation at 410 583 8000, or use our Quick Contact Form.

Whitney, LLP provides legal representation across Maryland in undisclosed termite damage claims, including Baltimore, Columbia, Annapolis, Rockville, Bethesda, Ellicott City, Frederick Silver Spring and Dorcester.