What Are My Legal Options If a Seller Fails to Disclose Property Defects?

Sep 29, 2025

Learn your legal options if a seller fails to disclose property defects. Chiariello & Chiariello helps buyers protect their rights.

When a seller fails to properly disclose defects in a property, your dream home can quickly turn into a nightmare. Residential real estate litigation may become necessary because sellers are not permitted to deliberately conceal issues with their Long Island property from potential buyers.

Before pursuing legal action, it’s important to confirm that the seller actually knew about the defect. A Long Island real estate attorney familiar with these cases can advise you on which types of defects are more straightforward to prove in court and which are more difficult, as well as what approach makes the most sense for your situation.

For example, if your basement floods after a heavy rain just days after moving in, whether you have a case could depend on how long the seller lived in the home. If they only lived there during the summer, they may not have been aware of the flooding. If they had lived there for several years, it would be much harder for them to argue they had no knowledge of the problem.

Lawsuit for Fraud

If you can show that the seller knowingly gave you false information or deliberately failed to disclose something significant about the property, and that you relied on that information when deciding to buy, you may have a claim for fraud. You’ll also need to demonstrate that it was reasonable for you to rely on what you were told. For instance, if an inspection revealed a roof leak and you chose to proceed anyway, you likely cannot claim fraud later.

Lawsuit for Breach of Contract

This option applies if the seller provided a warranty against a specific defect. Most New York real estate contracts are “as is,” meaning you accept the property in its current condition when signing. A warranty, however, is different from the legal disclosures sellers are required to provide.

For instance, if you’re considering a home located at the bottom of a slope and you ask about flooding, the seller might assure you that it has never been a problem. In such a case, you could request a warranty to cover that concern.

Lawsuit Against the Broker

In some cases, you may deal mostly with the real estate agent rather than the seller directly. If a seller told their broker about a defect but the broker failed to disclose it in order to close the sale, you may also be able to take legal action against the broker. The requirements for proving liability are the same as with the seller—you must show that they knew about the issue.