Good luck with what we hope is a small, easy to fix leak.
To me, your situation sounds more like a disclosure issue. Sellers have to disclose all material defects and if you can prove that the seller knew about any leaking plumbing and failed to disclose it, there could be potential liability. Since you say that the house passed an inspection, I have to conclude that the inspector did not note any evidence of water damage or water leaks, which weakens your case. This is of course assuming that the inspector included the unfinished basement in the inspection. It's also possible that the inspector was unable to access areas of the unfinished basement at the time of the inspection, but the inspector would make a notation of that in the report to cover himself as he could be potentially liable for defects he overlooked provided the area where the defect is later discovered was accessible to him during the inspection.
So your main challenge would be to prove that the leak existed prior to the closing of the transaction and that the sellers knew about it but failed to disclose it to you. Only you can decide if you have enough evidence to prove this and whether it's worth the trouble to go after the sellers. I would at the least contact the agent who helped you buy the property and he/she can contact the listing agent and see if a compromised could be worked out. Best of luck.
10.2 States that when the seller delivers physical possession.
Did the seller close at First American Title? They have as their default policy the eagle policy. This title policy will cover things that were done with out a permit. Other title companies have such policies, but it is what the seller closed with.
Did you get a home warranty?
If you are in UT you may contact me rob at aubrey dot net
I'm sorry you're having trouble with your home. It's never fun to buy something and have it break right away.
You could try to work something out with the previous owner outside of court. If that doesnâ€™t work in my state we encourage buyers and sellers to sign an arbitration agreement. If that is not done the recourse is to sue. You would have to convince the judge or arbitrator that the seller knew of the problem before closing and didn't disclose it. If it started leaking after closing for the first time it's your responsibility. Michael