Sellers in most states require disclosures. However, few states have strict disclosure laws. (Cali­fornia is an exception—it has amongst the strictest.) If sellers fail to disclose a serious problem, particularly one of which they were aware, you, the agent, and the sellers might work out a money settlement to you. You also may have the right to go to court to claim payment for dam­ages you may have sustained as a result. In addition, in some situations you can ask for rescission, the return of the home to the sellers and your money to you.

As a practical matter, suing over the sellers' failure to dis­close can be expensive, time-consuming, and the results can be mixed. However, sometimes it may be necessary.

In one situation, sellers did not disclose that their pets had urinated on the carpeting throughout the home they were selling. When the buyers saw the home, the win­dows were always open and the sellers kept a batch of herbs and spice brewing on the stove to give the place a homey aroma.

However, the first night the buyers moved in proved horrendous to them. It was cold so they closed all the windows and turned on the heat. The odors wafting up from the carpeting were so strong they made their eyes water. Soon the children were coughing. The smell liter­ally drove the buyers out of the home and into a motel, where they stayed.

Of course, the buyers immediately informed the sell­ers, who said they were shocked and were willing to pay for new carpeting. The buyers had the old carpeting and padding ripped out and then much of the flooring, because it had likewise been stained and the odor could not be removed. The final cost was $17,000.

The sellers balked at this, so the buyers took them to court. (It did not hurt that one of the buyers was herself an attorney.) They ultimately won and got their money.

In other cases, however, sellers have stonewalled buy­ers, claimed they were unaware of the problem or said it was not as severe as the buyers alleged, and they pre­vailed. As a result, often buyers will make as much of an argument as they can, but often will back down before going all the way to court. A lot depends, of course, on how badly damaged they have been.

In most cases, the matter is resolved through some form of negotiation or arbitration. The sellers come up with some money, usually less than the buyers are asking, and the buyers agree to drop the matter. On the other hand, in states with strict disclosure laws, the state itself may help the buyers pursue their claim.