Consumer Law, Warranties Kinda a contract question...

[rhturner]

I am very young and am buying my first house in Raleigh, NC.

I made an offer to purchase a house which was accepted. On the disclosure form it clearly indicated that the house exterior was hardiplank (nicer and more expensive than hardboard or masonite).

The current owners paid for hardiplank. In their building contract they have stated that hardiplank was to be installed on the house. They foundout it wasnt hardiplank (it was hardboard) after my building inspector took a look. I already had my doubts.... They are very very upset about this (at the builder). This house was purchased new on 11/97.

Questions: 1) [being an engineer and knowing little of the law] Is there a statute of limitations for this type of civil break of contract? The cost difference of hardiplank v hardboard are big. They paid for thousands more in better siding the current owners didnt get. Is it too late to get any money from this? We have made an agreement to split the settlement....

2) They have very good documentation on this issue (and what siding they were suppose to have installed). Would this be an issue that more than likely would be settled out of court (cut and dry fault) or do you think they will drag the current owners in court? They are hiring an attorney because they are already on the defensive about this...

The current owners are very nice people. I bought the house 20k less than its appreciated value. I am still happy with the offer. Because there was an item not disclosed properly on the disclosure form, I could get my ernest back or submit a new offer. My realtor has sent them a letter basically stating that I expect one of two things to happen:
1) the siding be replaced with hardiplank (obviouslly by the builder. It would cost the owners over 15k to do it)
2) a cash settlement [no amount stated] from the builder is to be split 50/50 over this issue.

I can't do anything except encourage the owners. It is in their ball park. I want to know what my chances are on getting one of the two above...

Thanks!
Ryan

 

[Michael Wechsler]

While I do sympathize with your situation, I am unsure as to how anyone here can provide you with chances of either settlement offer being extended. In fact, you'd be in the best position since you know the people involved. It sounds like you don't have a legal issue since you are being offered a satisfactory remedy.

 

[rhturner]

Hi,

I am afraid I must have gotten too expansive with my synopsis above. Let me forget the contract side of it... Is there some civil statue of limitations that will prevent the current owners from getting monetary reimbursement from a home they bought almost 5 years ago which didnt have the siding they ordered put on? It is a situation where basically they payed for 5k or more of better siding and the cheaper stuff was put on. They didnt find out until my building inspector checked it out.

Ryan

 

[Michael Wechsler]

There is a statute of limitations for fraud and breach of contract actions. This typically ranges in different states between 3 and 6 years. However, many fraud statutes run from the date that the fraud was or should have been discovered so the statute of limitations may run out later than the contract date. There may have been no reason to check if, externally, there was no reason to suspect or the defect/switch was latent or concealed.

 

[rhturner]

Thanks!