Selling Your House? 8 Legal Reasons Homebuyers Could Sue You (And Win)

Selling a home feels like one of those signs of financial success that means you’ve come full circle. You bought a home, now you’re selling it — hopefully at a profit. But lurking behind this proud homeownership move could be a risk you didn’t realize.

Some situations could get you into legal trouble when it comes time to sell, and there are even a few occasions where you could be sued. Often, the seller has no idea they are setting themselves up for a legal battle, yet the buyer sees an opportunity and takes full advantage of an unfortunate scenario.

Want to make sure you don’t end up spending your long-awaited profit on attorney’s fees? While rules vary from state to state, these are the eight surprising things that could get you sued when selling your house.

Some states require sellers to fill out paperwork known as a Seller’s Disclosure prior to the sale. This would be the place where the current owners would be required to list any known issues with the property, whether it’s a leak, prior damage from fire or water, mold issues, roof repairs that are needed, or structural problems.

And while there’s always a possibility that there could be issues that the seller isn’t aware of, failing to list the items you do know about could get you on the wrong end of a lawsuit.

If you previously had termites and had the issue addressed, that’s great. You did exactly what you were supposed to do.

But, if you sell your house, there’s one more step you need to take. You need to include any issues that have been addressed within the disclosures, even if you feel like the issue has been resolved and should no longer be a concern to yourself or the future owner. If you do not disclose these issues properly, you could be sued by the buyer if they find out.

Have a major leak in your bedroom ceiling just as you’re about to list your house? Don’t try to hide it by putting a fresh coat of paint on the ceiling and hoping you don’t get another big rainstorm.

Trying to hide a defect by simply putting a bandaid on the issue could lead to legal troubles, especially if the new owners can figure out that you tried to cover it up instead of letting them know about it.

Typically, all fixtures convey with the house unless specifically stated within the contract. Fixtures usually include all appliances, and while there’s an argument to be made that freestanding appliances are not fixtures, this should be carefully spelled out in the contract.

For example, unless you note in the contract that the dishwasher isn’t to be included in the sale, you could be in big trouble once the buyer moves in and sees that you’ve removed things that were meant to be left behind.

Things like draperies, floor coverings, lighting, and wall-mounted shelving, may be included in the purchase contract. Even though they may seem more like decor than part of your home.

But, if you don’t realize that they’ve already been promised to the buyer and you decide to take them with you, the buyer could have a legitimate case to sue. Hopefully, it won’t come to that, but you might want to double-check the contract before you break out the power drill to start uninstalling your curtain rods.

Anything you say while talking to the buyer could be used against you, whether a comment about the house or the neighborhood. You could be sued if they can prove that what you said was incorrect.

It’s best to let your real estate agent handle all interactions to avoid getting in this type of trouble.

When you sign the contract to sell your house, you’ve entered a legal agreement. If you break that contract and back out of the sale, the buyer may have the right to sue you. There are legitimate reasons a seller may need to cancel a contract, but that does not necessarily protect them if the buyer decides to exercise the full extent of their rights.

Unfortunately, not knowing something isn’t going to safeguard you against getting sued. Whether it’s leaving critical information out of your disclosures, doing a DIY patch job on a major defect, or deciding you do want that dining room chandelier after all, what seem like honest mistakes could put you on the wrong end of a lawsuit.

From finding ways to help pay for your mortgage, to leveraging your home equity for renovations, there are plenty of ways you can make selling your home a little easier without getting yourself into hot water.

Be sure to have a trusted real estate agent by your side to guide you through the process and to make sure that you’re making money rather than spending money, and always check with a qualified lawyer when it comes time to get legal advice.