House Flipper Hidden Defect $90,000 Settlement

A house flipper in Middle River, Maryland finally got serious and paid $90,000 once our client hired a real estate attorney with Whitney, LLP.  After the house flipper was confronted with the fact he did not pull permits and hid water intrusion and structural damage, he chose to settle the case rather than litigate.  Whitney, LLP was hired by the home buyers to provide representation after our clients moved in, immediately began experiencing problems and their concerns were not taken seriously by the flipper. 

Home buyers that consider flipped houses should be aware flippers often do not pull permits, use unlicensed and inexperienced contractors, and often hide defects in order to make more money.

If you need a real estate attorney, Whitney, LLP bring claims and can sue Maryland house flippers to recover money for home buyers  to fix hidden and undisclosed problems.

From Dream House to Money Pit In a Week

Before deciding to purchase the home, our clients looked at over 50 homes.  They had a unique home search criteria due to a multi-generational living situation, as well as mobility requirements due to health issues.

After months of searching, they found what they believed met their needs, and at a price they could afford.  The house was advertised on Redfin as being fully renovated, with many pictures showing a refinished basement, new kitchen and other desirable features.

Within a week of moving in, the problems began.  Electrical problems were the first problems to arise.  Fuses began to blow under normal use, causing our clients to call an electrician.  

Discovered Flipper Did Not Pull Permits

The electrician discovered that the flipper did not pull any permits for the electrical work that had been performed.  They contacted the flipper, who denied that he had done anything wrong.  However, the problems with their flipped house were just beginning. 

House flippers that hide water leaks cause mold to grow.

Water Intrusion in the Basement

A few months after moving in, the new home owners discovered water pouring into the basement during a heavy rainstorm.  They hired a contractor to fix the water intrusion.  The contractor removed a large amount of drywall to the right and left of the area of water intrusion, and discovered signs of pre-existing mold and previous water intrusion.

New Drywall Over Pre-Existing Damage

More drywall was removed in order to determine the extent of the mold and water damage.  While doing this, the contractor found that new drywall and new 2×4’s had recently been installed.  This work appeared to have been done by flipper in the same areas that the pre-existing problems were located.

House Flipper Hidden Defect – Structural Damage

The new drywall also covered up cracks in two different walls on the the concrete block structural wall in the basement.  Both walls were obviously cracked.  The walls were also bowed in, causing additional structural defects that needed to be fixed.

Expensive Repairs

The contractor who gave them a significant quote to repair the water intrusion, mold and structural defects hidden by the flipper.  The contractor also recommended they find a lawyer to sue the house flipper.  Our client eventually realized they needed professional representation, searched for a real estate attorney, and hired Whitney, LLP.

Bringing Claims Against a House Flipper

Whitney, LLP’s attorneys contacted the house flipper.  The house flipper then hired an attorney.  The parties agreed to go to mediation, which was required as part of the Residential Contract of Sale.  However, the mediation was not successful.  Our clients decided to proceed with filing a lawsuit against the flipper.

House Flipper Hidden Defect $90,000 Settlement

After the unsuccessful mediation, but before the lawsuit was filed, the attorneys continued to negotiate.  The flipper agreed to pay $90,000 to avoid the house flipper hidden defect lawsuit.  The $90,000 covered the cost of repairing the hidden defects and attorney’s fees.  Of course, all claims are different, and past results do not guarantee future results. 

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

Real Estate Attorney to Sue House Flippers – Whitney, LLP

If you have been taken advantage of by a house flipper with hidden defects, you may be able to recover compensation.

Our real estate attorneys represent Maryland home buyers and can help buyers fight back against greedy house flippers that do not pull permits and hide serious defects.

We offer Legal Consultations to Home Owners

Call Whitney, LLP’s real estate attorneys at 410 583 8000, or use our Quick Contact Form, to discuss your potential case.