Check to see if you had such a policy issued to you at closing. If you do not have this warranty coverage, you will need to look at many factors to determine whom, if anyone, might be liable. If the seller truly did not know of the problem, that is okay, but he cannot hide behind stated ignorance if he did not know of the condition. If so, courts are not likely to overturn this limit. A real estate attorney well versed in disclosure issues can help determine if you have any grounds for recovery.
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