You'd have to retain a lawyer to do some research because usually those representations may be barred by your own inspections and the closing of title except for certain exemptions for "environmental conditions" like hazardous waste disposal and petroleum spills or tank leaks, but lying on a disclosure statement may be actionable if the lies were blatant and false and the former owners knew or should have known those representations about the septic system were false or negligent of the true factual disclosure. Worth a couple of hours of attorney research and seeing whether there is any case law on point. What are the damages to fix? Perhaps a small claims action in the $3,000 - $5,000 jurisdictional range may work for you (the amount depends on local court jurisdiction in your area, whether it's a city/village or Town).
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Yes you can sue. But first speak to a real estate lawyer to determine if it is worth it. What will it cost to litigate versus what can you recover and what are the chances of winning.
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Yes, you can sue. Based on your facts, it is likely you will be successful. You will still need to prove your damages, however.
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Yes you can sue under the property condition disclosure act. Hire a real estate litigator as soon as possible.
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I have experience with this type of case. A case like you describe is fact dependent, and the legal standard is demanding. That said, a lawsuit is possible, but without a review of your contract, deed and other relevant documentation, it's impossible to speculate about the possibility of success.
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