Sellers didn't disclose water/drainage issues, can we hold them responsible?

You likely have recourse, and the fact that they explicitly denied it on the disclosure form is significant. That's not a gray area. Seller disclosure fraud or misrepresentation is a legitimate legal claim in most states, and denying a known defect in writing is exactly the kind of evidence that makes these cases worth pursuing. Start documenting everything right now. Photograph and video the flooding, get a drainage contractor to assess it and put in writing that this appears to be a long-standing issue, and pull any permits or records from the municipality that might show prior drainage work on the property. Neighbors can also be useful here since flooding problems in Victorians tend to be known in the neighborhood. The stronger your evidence that the sellers knew, the better your position. Then get a real estate attorney involved before you do anything else. They can send a demand letter, which sometimes resolves it without litigation, or advise on whether a lawsuit makes sense given the repair costs. Three months out is still well within the window to act. Don't wait much longer though.

Yes—potentially, but it depends on proof. In most states, sellers are required to disclose known material defects like water intrusion. If the buyer can show the seller knew about the drainage/flooding issue and failed to disclose it, they may have a claim for misrepresentation or fraud. Key factors: • What was stated on the disclosure form • Any evidence the seller knew (past repairs, prior flooding, neighbors, etc.) • Inspection findings before closing It’s very fact-specific—this is something a real estate attorney should review.

Yes you can request compensation if the seller lived in the home they surely knew about the flooding. The agents involved can only be held liable if they knew about the issue. Did the home inspector not see any water lines on the basement walls?