Winnipeg homebuyer who says he found mushrooms growing from basement carpet, 'deluge of water' sues seller

After buying a house and then discovering mould throughout the basement, a Winnipeg man has filed a lawsuit claiming the house seller did not accurately disclose the basement moisture issues before the sale.

The buyer paid $640,000 for the house in west Winnipeg's Kirkfield neighbourhood and took possession in September 2022.

That fall, he found mushrooms growing out of the carpet in the basement, according to the lawsuit.

In April 2023, "he discovered a deluge of water pouring into the basement from a window well," causing significant damage, according to the suit, filed in late March in Manitoba Court of King's Bench.

After that, "significant long-term mould growth was found throughout the basement, necessitating the complete gutting of the basement and requiring extensive remediation to remove the mould," the court document says.

The lawsuit alleges the extent of mould and rot found in the basement indicated the problem had been going on for some time.

The house buyer is suing the former owner of the house, as well as the real estate agent for the sale and Royal LePage Dynamic Real Estate, the brokerage the agent works with.

The plaintiff, Antonio Rinella — who is also a real estate agent but works for a different brokerage — is seeking an unspecified amount in damages. 

The allegations have not been tested in court and the defendants have not filed statements of defence. 

A spokesperson for Royal LePage Dynamic Real Estate declined to comment.

Had 'some water seep' into well: seller

The lawsuit claims the moisture infiltration and window well flooding were exacerbated by the fact that the ground sloped toward the house in the back yard, causing water to pool there and eventually seep into the basement.

Rinella couldn't detect that before he bought the house because of a large deck that had recently been constructed over the area, the claim says.

Prior to the house sale in 2022, the seller filled out a property disclosure statement that became part of the sale agreement.

The lawsuit alleges she responded to one question in the property disclosure by saying "she was not aware if the property contained or once contained mould."

But the suit argues the seller "either knew of the presence of mould or else was reckless to the very real possibility that mould could have been present."

In other answers on the property disclosure statement, the seller said she was aware of flooding or seepage affecting the property, but explained that during thawing in 2022, she had "some water seep into the window well," the statement of claim says.

"It was dealt with immediately, happened only once and never happened since," she wrote, according to the lawsuit.

Renovations allegedly done without permits

The seller and her late husband bought the house in 2015 and did extensive renovations while they owned it, the lawsuit says. 

It alleges the City of Winnipeg did an inspection of the property while remedial work was being done, at which point it was discovered permits hadn't been obtained for the renovations done before Rinella bought the house, according to the statement of claim.

It alleges the seller had deliberately answered two questions in the property disclosure statement inaccurately "to conceal the fact that permits had not been obtained" for the work.

The city issued a violation notice for the unpermitted work, and "various structural, plumbing, and electrical deficiencies were discovered that the plaintiff is required to remedy," the lawsuit says.

The lawsuit also names a company previously owned by the seller's late husband as a defendant, alleging it or its employees did "significant renovations" at the property.

But the company's general manager told CBC it was not involved in any renovations at the house.

The lawsuit also alleges the real estate agent and Royal LePage were negligent in their duty to notify the house buyer of the property's defects, and that the agent had an obligation to explain to the seller "the importance of answering the questions on the property disclosure statement truthfully and accurately."

The statement of claim says Rinella has already spent nearly $25,000 addressing the moisture issues, such as remediating the mould in the basement, having the foundation properly waterproofed and correcting the lot grading issues.

It also says he expects more costs related to the renovations done without permits, such as engineering costs related to structural changes and significant electrical work needed.

In all, the lawsuit claims it will take more than $75,000 of work to rectify the issues and make the house a safe place to live.

The plaintiff's lawyer, Stephan Thliveris, says his client does not want to comment on the case at this time.