I bought a home and the basement flooded because the drain tile wasn't working properly and the window wells filled to the brim after a heavy rain, which then had nowhere to go but inside the house through the windows. I have strong reason to believe the previous homeowner knew about this and didn't disclose it. What are my options, especially from a legal/financial perspective?

This is a serious situation, and you likely have legal recourse — but you'll need to act quickly and document everything thoroughly before you repair anything.

New Brunswick's property disclosure rules create real obligations for sellers. While NB doesn't have a mandatory province-wide disclosure form (unlike some provinces), sellers have a common law duty not to actively conceal known defects. If the previous owner was aware of recurring drainage and flooding issues and said nothing — or worse, patched cosmetic damage to hide evidence — that can constitute fraudulent misrepresentation or negligent misrepresentation under New Brunswick common law. Either opens the door to a civil claim.

Your first move is documentation. Before you touch a single thing, photograph and video everything — the flooded basement, the window wells, the waterline on walls, any efflorescence staining or previous paint-over-staining that suggests this happened before. That old staining is gold in a legal dispute because it shows the problem predates your ownership. Pull out your purchase agreement, property disclosure statement (if one was provided), home inspection report, and any seller's representations made during the sale. If your real estate agent has emails or notes from the seller's agent making claims about the property's condition, those matter too.

Get a professional assessment on paper. Hire a licensed contractor or structural engineer to inspect the drainage system and provide a written report. You want an expert opinion stating that the failed drain tile and window well drainage issues show signs of long-standing problems — not a one-time freak event. This professional opinion becomes the backbone of any legal claim. You can find qualified contractors through our New Brunswick Construction Network directory.

On the legal side, your options are:

• Small Claims Court — If your damages are under $20,000, this is the most accessible route. Filing fees are $50 for claims up to $3,000 and $100 for claims between $3,000 and $20,000. No lawyer required, though one can help.
• Court of King's Bench of New Brunswick — For larger claims (which basement flooding and foundation remediation often are, given costs of $15,000–$60,000+ for proper waterproofing and drain tile replacement), you'd file here. A real estate litigation lawyer is strongly recommended.
• Real estate agent liability — If a seller's agent made affirmative misrepresentations, or if your buyer's agent failed to flag obvious red flags during the purchase process, there may be a complaint to the New Brunswick Real Estate Association (NBREA) and potentially a civil claim against the brokerage.

Check your home insurance policy immediately. Some policies cover sudden and accidental water damage from a single event, even if the underlying cause was a pre-existing defect. Others exclude it. Call your broker today — don't wait. If coverage is denied, document that denial in writing because it becomes part of your damages calculation in a civil claim.

Regarding the Construction Remedies Act (SNB 2020, c.29) — this legislation primarily governs contractor/supplier liens on construction projects, so it's less directly relevant here than common law misrepresentation. Your strongest legal ground is likely fraudulent or negligent misrepresentation in the real estate transaction itself.

Consult a real estate lawyer in New Brunswick before you repair anything beyond emergency mitigation. Many offer a free or low-cost initial consultation. They can advise whether the evidence supports a demand letter to the previous owner (which sometimes results in a settlement without going to court), a formal claim, or both. The limitation period for civil claims in NB is generally two years from when you discovered (or ought to have discovered) the problem — so the clock is running, but you have time to be strategic.

Once you've documented everything and spoken to a lawyer, then get your drainage system properly assessed and repaired. A functioning exterior drain tile system with proper window well covers and grading is the permanent fix — but that repair bill is exactly what you may be entitled to recover.