The Day A Friendly Neighbor Sparked A Lawsuit
I represented the buyer that saved for their downpayment for year, toured on lunch breaks and weekends, and finally found the place that felt like home. We closed on a Friday. On Monday the doorbell rang. It was the next door neighbor with a plate of cookies and a casual comment that stopped my clients cold. He was making small talk that let him to disclose that a mold remediation company had been at the house about a year earlier. He even remembered the truck name. He suggested they keep an eye on the attic, just in case.
My buyer texted me immediately. The disclosure we had received said there were no past water issues and no environmental concerns. The CLUE report we ordered showed no insurance claims. Inspections were clean. Still, I told them we would check. We called the company the neighbor named and asked for records tied to the address.
The mold remediation company shared their records. The records showed prior water intrusion and a full remediation scope. No insurance claim had been filed, which is why the CLUE report was quiet. No mention appeared on the seller disclosure. We brought the documents to a licensed contractor who confirmed areas that needed additional work in the attic. Within days an attorney for my buyer sent a formal demand letter. The number attached to that letter approached seven figures once additional work, legal fees, and the very real stress of the situation were tallied.
If only the seller had disclosed.
Why Full Disclosure Protects Everyone
Sellers sometimes convince themselves that silence is safest. They think no one will ever know about past water intrusion or a remediation crew that came and went at night. But real estate has a way of revealing its history. Neighbors chat. Contractors keep records. A buyer notices a stain when the seasons change. Secrets do not stay secret for long, and when the truth surfaces after closing it can bring years of anxiety, expensive attorneys, and a lawsuit that swallows time and savings.
Disclosing does the opposite. It builds trust. It gives buyers context and choices. Most reasonable buyers do not expect perfection. They expect honesty and paperwork. When sellers share what happened, provide invoices and warranties, and allow inspectors to verify the fix, the problem becomes a line item rather than a lightning strike.
Read: Seller Disclosure Done Right Now, Saves You Later
What I Do For Buyers When Something Feels Off
- Ask for every document connected to past work, including proposals, paid invoices, warranties, and photos before and after.
- Order a CLUE report early even when the seller says there were no claims. It is not a full history but it often catches the bigger events.
- Bring in a specialist to confirm repairs. A general inspection is a snapshot. A qualified roofer, plumber, or mold inspector can validate the story in far more detail.
- Negotiate with facts. When paperwork is on the table we can ask for repairs, credits, or extended warranties without drama.
- If facts were hidden, escalate swiftly and professionally. Clear timelines and written records matter.
What I Tell Every Seller Before They List
If you have to ask whether you should disclose it, disclose it. Put it in writing. Attach the receipts. Share the warranties. Add a short summary that says what happened, who fixed it, and whether it has recurred. When you do that, you sleep better and you sell cleaner.
A Simple Seller Disclosure Checklist
- Past water intrusion anywhere in the home
- Any mold testing or remediation and the company that performed it
- Roof leaks and repairs with dates and invoices
- Foundation or drainage work
- Insurance claims of any kind
- Major mechanical work on HVAC, plumbing, or electrical
- Permits that were pulled and closed
- Ongoing warranties or recurring service contracts
The Takeaway From That Doorbell Moment
My clients still love their home. We resolved the issue, but it came with weeks of panic and a stack of legal letters that no one should have to open. All of it was avoidable.
If you are getting ready to sell and want to review your disclosure before you hit the market, reach out. If you are buying and want a pro in your corner who will dig for the story behind the walls, reach out. I can connect you with a vetted real estate agent in your local market who leads with transparency and protects you at every step.
