Legal Question in Real Estate Law in California
Hello, My wife was just served with a law suit regarding non-disclosure of a defect in a home she and her aunt inherited and sold two and a half years ago.Along with my wife the buyer is also suing both real estate agents and the home inspector. At the time of the sale the home inspection revealed cracks in the foundation but were disclosed and the buyer was made aware via the home inspection report. The buyer agreed to purchase the home as is since we had no money to perform the repairs. Does he have a valid case or is he just fishing for someone to pay for his needed repairs? We have no real assets of real value and the only property we own is currently in foreclosure. Thank you.
2 Answers from Attorneys
These kinds of cases are VERY fact specific. The law is pretty simple. Sellers must disclose all facts known to them or that through the exercise of reasonable diligence would have been known to them that would materially affect the value or desirability of the property. If heirs sell a property without ever occupying it, the standard of care as to what "reasonable diligence" they must exercise is greatly diminished. Also, not every detail must be disclosed. It is enough that the disclosure put the buyer on notice of the issue with sufficient information to make their own inquiry as to whether and to what extent it affects their desire to buy the property and at what price. That's the law. How it applies to the exact facts of any particular transaction is impossible to even begin to determine without going over all the known facts and documents.
What's causing the cracking foundation? It's possible that some third party has some responsibility here. Is the home located in a hilly or sloped area?
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