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The thing that pisses me off about this, is how the previous owner who illegally modified the house isn't instantly on the hook for the amount it elevated the house price, and you would have to proactively litigate them in civil court (if that's even legal).
I agree, we had the option to sue the seller but the reality is, even if we spend a ton of money to take him to court, there's no guaranteed payment at the end. We decided to focus on fixing the problem rather than try to get compensation from them.
There is absolutely no system in place to protect people from something like this. The inspector didn't find it, the realty attorneys didn't find it, the realtors didn't find it. We only found out about it when pulling a permit for a deck.
Yep. Just another example of how the system is designed to protect the existing capital and landowners over what is fair or just.