Can homebuyer make seller pay for a new roof post sale?

Question: Last summer we bought a nice four-bedroom home in Sunnyslope. There was nothing in the Seller’s Property Disclosure Statement about roof problems. Everything was fine until that major rainstorm last fall that caused several leaks in our roof. Since then we have had a roofing company come out to try to make repairs, but they say we must get a new roof, which will cost $16,000. The roofing company said that, because there was evidence of water damage in two of the bedrooms, the seller and the listing broker both should have had the roof inspected before listing the home for sale. Can we sue the seller and the listing broker now for the $16,000 cost of a new roof?

Answer: Under the standard Arizona Association of REALTORS contract, lines 325-333, if there is any dispute between the seller and the buyer, including non-disclosure by the seller to the buyer of a leaky roof, there must first be mediation. (Note: we try to use as a mediator a retired judge who has the cachet and the respect to best settle a dispute.)

If there is no settlement at mediation, the standard Arizona Association of REALTORS says that the buyer shall first go to arbitration. In practicality, however, there are rarely arbitrations. Why? Arbitrators have no boundaries, e.g., an arbitrator can rule that grass is blue, not green, and there is NO appeal. The arbitration ruling can generally only be reversed if the arbitrator takes a bribe or something similar. Further, good arbitrators charge at least $500/hour, while a Superior Court judge is technically ‘free.’ Finally, the buyer generally opts out of arbitration within 30 days, and a lawsuit is filed by the buyer in Superior Court. Now let’s talk about the Realtors. Both Realtors (who are normally paid their commissions at close of escrow and understandably try to close their file quickly after close of escrow) are not required to mediate or arbitrate, and generally refuse to participate voluntarily in mediation or arbitration.