Failure to disclose known lead hazard

We bought the house in Feb 2008. In June 2007, the seller was cited for lead hazard violations due to chipping lead paint by the city of Chicago. The seller did not disclose the citations or the presence of lead paint in the house.

June 23rd 2008, we received a summons to go to an administrative hearing on July 8th, 2008 regarding lead violations. This is the first we heard about lead in the house at all.

The city attorneys were very unforgiving, despite our willingness to cooperate, and lack of knowledge of the lead paint. The city attorney will not give us the lead test results, any letters or information sent to the previous owner or any other information regarding our case unless we file a Freedom of Information Act Request.

The city attorney told us she would pursue the maximum $5,000/day for over 365 days worth of fines unless we pleaded liable and agreed to pay $50 in fines, and abate the lead in less than 60 days. We felt we had no choice but agree, although I feel fairly coerced into agreeing. The finding of liable was entered, and the case was continued for 60 days for determination of fines.

We have no children, no children visit us, and the property is fenced. I do not see how this constitutes a high priority lead hazard.

We contacted the attorney we used for the closing, who contacted the seller's attorney. The seller came to the hearing, and is willing to cooperate. The seller brought with her to the hearing: a letter from the city regarding the lead violations, the results of lead tests she had conducted in the house several years ago. None of these were given to us or disclosed to us before the hearing.

However, our closing attorney is not comfortable representing us any further for hearings with the city. With the aggressiveness of the city attorney, I am not comfortable returning to future hearings without legal representation.

What recourse do we have? Is the cost of abating the lead a damage that can be recovered from the seller? Would the Title company have any liability for failing to turn up the lead paint violation citations by the city?

My opinion is that the seller should be responsible for your cost---whether hiring an attorney, or whether it is fixing the lead problem since there was no full disclosure.

Also, a title company is just that. They research the deed to make sure it is unencumbered---there is no reason a lead paint notice would be recorded on a deed, so no, the title company has no liability.

You were, apparently, a bonafide purchaser for value, and the seller failed to disclose the problem. Therefore, hire another attorney ( which, obviously, you will have to pay for up front) and sue the former owner who failed to disclose the problem.

I agree with you regarding the issue of lead----the city can dollar and dime you to death over it. But, if it is the law, it must be followed. First course of action, compliance with the city since you are, unfortunately, the 'owner' of this problem now and you don't want to cause any more problems for yourself. Secondly, (concurrently, if possible) be negotiating with the seller the cost of having all of this done. I suspect she IS willing to be compliant since she could be facing a lot more than hefty fines.

Good luck. I hope this is over soon and you resume quiet enjoyment of your home.