In AR, Seller didn't disclose a drainage problem and water is flooding into the garage and storage

Hi Pam, Your situation has an unusual twist that changes the whole analysis, so let me walk through it carefully. Arkansas is generally a "buyer beware" state. Unlike most states, Arkansas law does not require sellers to hand over a written property disclosure. That is the bad news baseline, and it is why generic "sue for nondisclosure" advice from other states does not map cleanly onto yours. But here is your twist: your CONTRACT asked for a Property Disclosure Statement, the seller signed agreeing to provide it, and then never delivered it. That converts this from a pure disclosure law question into a contract question. A promised document that never arrived, followed by the exact kind of problem such a document exists to reveal, is something a real estate attorney will want to see. Bring them the contract, the signed disclosure provision, and your closing file. Meanwhile, build the evidence that the seller KNEW about the drainage problem, because knowledge is what these cases turn on: - Talk to the neighbors. Long time neighbors have usually watched that water flow for years, and they often know what the seller tried in the past. - Look for concealment clues: fresh paint or patching in the garage and storage areas, recently added gutters or grading, French drain remnants. - Check with the city or county for permits or complaints tied to drainage at the address. - Have a drainage or foundation contractor document the condition in writing, including their professional opinion of how long it has existed. - Ask about the previous owner's insurance history through your agent or attorney if possible; prior water claims speak loudly. One important caution: you purchased in August 2023, and claims like this carry time limits. Do not let this drift another season; see an Arkansas real estate attorney soon, many offer inexpensive initial consultations. And in parallel, get bids on the actual fix. Sometimes regrading and drainage correction costs far less than feared, which also defines what you are negotiating for. I am a real estate professional, not an attorney, so treat this as preparation for good legal advice rather than the advice itself. I work in Los Angeles (the South Bay), and if you need help finding strong local professionals in western Arkansas, I am happy to reach into my network. Zoltan

If the seller knew about the flooding and failed to disclose it, you may have legal options. The fact that they later acknowledged they were aware of the issue could be important, especially if you requested a property disclosure but never received one before closing. Your next step should be to gather all of your documentation, including your purchase contract, any communications with the seller, photos of the flooding and mold, repair estimates, and the text message where the seller admits knowing about the problem. Then consider speaking with a local real estate attorney who can review the facts and advise you on any potential claims under Arkansas law. Because disclosure requirements and legal deadlines vary by state, it’s important to get state-specific legal advice as soon as possible to understand your rights and any time limits that may apply.

At this point, you need a lawyer. The sale shouldn't have closed if the condition report was a contingency, but unfortunately this is now years ago.

This goes beyond what you should take on yourself or what a Realtor can help you with. You need to seek the assistance of a real estate attorney.

Pam, I would highly suggest speaking with a local real estate attorney to discuss your options. Keith Jean-Pierre Managing Principal The Dapper Agents Real Estate Operations in ALL 50 States