Legal Question in Real Estate Law in California

Does a homeowner have to disclose to a potential home buyer that there had been a damaging fire in the house?


Asked on 1/20/12, 9:14 pm

4 Answers from Attorneys

George Shers Law Offices of Georges H. Shers

Yes,if there might be some damage that was not found and/or repaired.

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Answered on 1/20/12, 10:10 pm

Shers is wrong again. It makes no difference whether you think there might be residual damage. Anything that would materially affect the value OR DESIRABILITY of the property must be disclosed. Failure to disclose can result in being sued for damages, or for rescission of the transaction. A fire that resulted in damage to the building most certainly affects the desirability of the property, if for no other reason than that no buyer would want to conclude a sale without fully investigating the extent of the damage and the repairs before closing the deal.

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Answered on 1/20/12, 10:24 pm
George Shers Law Offices of Georges H. Shers

I disagree with Mr. McCormick. Under his broad theory any damage to the property [broken window, plumbing leak damaging wood layer under kitchen sink, hole in wall, replacement of wooden floor, etc.] would have to be reported. I used the term "might" which means in English that there is a reasonably possibility that not all of the damage has been perfectly repaired. You are liable for any hidden defects you know or reasonably should have known of, whether they are from damage occurring during your ownership or pre-existing. If there was a significant fire, then that would have to be reported as the cause of the fire might still exist [bad wring,etc.] or not all of the damage perfectly repaired [some framing might have been weakened]. If the fire from a cigar ash damaged the surface of a wooden floor and the entire flooring was replaced, I think most reasonable, honest people would not feel that effects the value of the property or its desirability. Mr. McCormick may disagree with that conclusion [I do not know if he does or not].

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Answered on 1/21/12, 11:50 am
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

I think if you read the three prior answers you'll get the picture. In brief, anything that may significantly affect the value or desirability of the property should be disclosed in writing. If you are the seller, you should err on the side of caution and over-disclose. There are limits, however. Apply a rule of reason.

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Answered on 1/21/12, 1:07 pm


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