Real Estate Law
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You have a cause of action against your seller for fraud. Pursuant to(Mich. Comp. Laws Ann. §565.954, the seller is obligated to disclose anything the seller knows or should have known that a reasonable buyer would consider material in making the decision whether or not to buy the property. This clearly qualifies as a material matter that should have been disclosed and is clearly something the sellers knew or should have known. Failure to disclose gives you a cause of action for fraud and misrepresentation against your seller under Mich. Comp. Laws Ann. § 565.961. The statute of limitations in Michigan for a fraud action is 6 years. You should send the sellers a certified, return receipt requested letter detailing the situation and lack of disclosure and demand they compensate you to remediate the problem within a short specified period of time. Inform your seller that if they do not timely comply with your demand, you will have no choice but to file a suit for your damages. BUT, be sure to specifically mention that you will be filing this claim not only as a breach of contract case, but also as fraud and deceptive trade practice causes of action, which will entitle you not only to your damages, but also an additional amount equal to multiple times your actual damages as punitive damages. That should provide plenty of incentive to comply with your demands; but, if it does not, file your suit. Even if you have to file the suit, that's likely all you will need do. In my experience, they will settle this without a hearing rather than risk punitive damages and the fraud and/or deceptive trade practice judgments being on their record.
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