House inspector missed something big! Help!

[sweetpeamom25]

We purchased a home in May of this year. It’s now September and to make a very long story short, we’ve found out that our house inspector missed something, something big! The bathroom in our basement is not up to code. The type of toilet and plumbing is not code approved in MN (another long story, but I’ll just leave it at what’s there isn’t code approved). No plumber will touch it to repair since it’s not code approved. It will cost of thousands and thousands of dollars to fix.

The fix involves rolling back the carpet in our basement, breaking up the concrete and running a new line to the main sewer line. We’ll have to break up some of the floor in the bathroom and hope we can find matching tile to repair. We also might have to cut a hole in our upstairs living room wall because there is plumbing behind that that they may have to access. It’s a mess!! If we leave the bathroom as is, we chance having it back up and having an even bigger mess—I’m sure you can imagine.

My question is, what do we do since our inspector should have caught this? I know you can sell a home that isn’t code approved, but generally the buyer would be aware of it and ok with fixing it. We had no idea. What’s the point of an inspection if they miss something that isn’t up to code? We’re not the type to sue anyone (that would just cost more anyways) but this is a huge expense out of our pocket, and how do we know this inspector didn’t miss something else? Has anyone else bought a house and then found out the inspector missed something big?

We waited a long time to buy a house where we can grow as a family. This house isn’t huge, isn’t perfect but it was supposed to be our version of a dream house. I’m so crushed and disappointed that we’re going through this. I feel like our inspector completely failed us and the buyers didn’t disclose what they were supposed to.

[ReneeW]

Hmmm, this sounds like it has "litigation" written all over it. I would guess that by law, either the previous homeowners or the inspector/inspector's company are liable. Do you have any paperwork from the inspector that says "not liable" officially?

Here's a good link: www.nolo.com/legal-encyclopedia/bought-home-with-defects-whos-30058.html


Who's Responsible?
Even if you think you've been wronged, you can't sue everyone involved in the sale of your home. The responsible parties might include one or more of the following
The seller. Nearly every U.S. state has laws requiring sellers to advise buyers of certain defects in the property, typically by filling out a standard disclosure form before the sale is completed. (This responsibility remains even if you bought the house "as is.") The standard form usually asks the seller to state whether the property has certain features (like appliances, a roof, a foundation, systems for electricity, water, and heating, and more) and then rate or describe their condition. Some states' disclosure laws are more comprehensive than others, and if a feature isn't on the list, the seller may not be required to speak up. Also, the seller isn't usually required to scout out problems. But if there's clearly a place where the seller should have stated a problem but denied it, try to figure out whether the seller in fact knew about the problem. For example, if the seller patched over or hid problem areas, or if the neighbors have told you about the seller's efforts to deal with a problem, the evidence is on your side.
The seller's real estate agent. Some states' laws make sellers' agents liable for failing to disclose problems they observed or were told of by the sellers. Again, check your state's disclosure laws and try to figure out whether the problem could have been seen before the sale.
Your inspector. Hopefully, you got a home inspection before buying. In theory, the inspector should have spotted problems that the seller wasn't even aware of. If the inspector missed problems that an expert should have noticed, the inspector may be liable. Read over your inspection report to see what it said about the area in question. Some buyers are embarrassed to find that the problem is spelled out right in the report, or that the problem falls within an area that the inspector rightfully excluded from the report.
Do You Have a Case?
Once you've figured out the possible responsible parties, you'll want to know whether their action -- or inaction -- entitles you to compensation. If your situation meets the criteria below, you may have a case. We've collapsed a few legal principles into this list, but it will apply to most situations in most U.S. states.
The defect was there before you bought the home. Problems that started since you bought or are a natural result of your home's aging or your lapses in maintenance are yours to deal with. Of course, determining when a problem started can get complicated. For example, a blockage in your sewer line may be a new problem, or it may be a recurrence of a long-time issue with roots growing into the pipes. You may need a professional's analysis. But if the problem could have started before you bought the house, keep reading.
It's not an obvious defect that you could have seen yourself before buying. If there was a huge crack running across the living room ceiling at the open house and you've only now decided to bring it up, no dice. But if it was hidden by a false ceiling, the matter may be worth pursuing. Don't worry if your inspector should have seen the problem. That just means you've got a potential claim against the inspector, too.
No one told you about the defect before the sale, or someone actually lied to you about it. The responsible party may have been the seller, the seller's agent, or the inspector, as explained above.
You relied on the lies or nondisclosures. This one's probably easy. If, for example, you took the seller's word that a remodel job was up to code in deciding to buy or in setting your price, you acted in reliance.
You've incurred monetary damage as a result. Your costs of repairs or related damages (such as destruction of your personal property due to a flooded basement, or a decrease in your property value due to an undisclosed environmental hazard) will become legally speaking, the "damages" that you may collect -- even if you haven't paid any out-of-pocket costs yet (for example, you need a new foundation but haven't actually hired a contractor to build it). But don't expect to collect any damages that go beyond the house itself, such as for your pain and suffering.