I want to discuss a recent court case I was involved in that shows just how costly it can be when sellers fail to disclose water and mold damage.
This case took place in Radnor, PA, and it centered on a home that was listed for $1.2 million but ended up selling for $1.36 million. The sellers walked away with more than they were asking for, but instead of being upfront, they hid major problems that would eventually cost them dearly.
What the Buyers Didn’t See
From the very beginning, the buyers were rushed through walk-throughs. Both realtors created short, pressured windows that left little time to really evaluate the property. Behind the quick tours were years of water intrusion problems:
- A leaking basement.
- Roof failures that damaged three bedrooms.
- Wall issues from poorly installed stucco and windows.
These weren’t surprises to the sellers. In fact, their own old social media posts—later uncovered by the buyers’ attorney—showed them talking about water problems in the basement.
The Lawsuit
After closing, the buyers realized the scope of the damage. They had used everything they had to purchase the property and couldn’t afford the massive repair costs. Their attorney filed a lawsuit seeking rescission—essentially asking the court to unwind the deal because the house had been misrepresented.
I testified in this case alongside other expert witnesses. We all confirmed the same thing: the damage wasn’t new and didn’t suddenly appear. It was long-term, ongoing, and deliberately covered up.
It wasn’t just the sellers who paid the price. The realtors were also sued and ultimately settled before the trial. They were found to be complicit in rushing the buyers through and not allowing proper inspection windows, and together they lost about $50,000.
The Outcome
Faced with overwhelming evidence, the sellers agreed to settle. They were forced to pay $230,000 plus more than $100,000 in legal fees. What looked like a profitable sale quickly turned into a financial disaster—all because of dishonesty.
The Lesson
The moral is simple: when selling a home, disclosure matters. Water damage and mold don’t just disappear, and covering them up is never worth the risk. Buyers may still move forward if issues are disclosed properly, but hiding them almost always ends in lawsuits and financial loss.
And for realtors, this case is a reminder that your actions matter too. Pushing buyers through rushed walkthroughs or glossing over concerns doesn’t just put your clients at risk—it can put you in the courtroom as well.
From my perspective, having been directly involved in this case, it’s clear that honesty and transparency protects everyone in the long run.
