Legal Question in Civil Litigation in California
Confidential Report used by Seller's Agent
Buyers ordered confidential home inspection reports and shared some parts of the reports with the Seller's Agent as part of the negotiations on a home. Deal did not get completed; however, Sellers' Agent is offering Buyer's confidential reports to new prospective buyers. While they are required to share the information on defects with prospective buyers, is there any way for us to explain to them that they are inappropriately using confidential information? What is our recourse? We'd like them to buy the rights to the reports and offer them a reliance letter.
2 Answers from Attorneys
Re: Confidential Report used by Seller's Agent
Almost undoubtedly not. The seller's agent is now obligated to disclose the information to prospective purchasers, lest he/she expose him/herself to liability for nondisclosure.
Next time don't bother sharing the information; or better yet, just assume that the information you obtain is not confidential.
Re: Confidential Report used by Seller's Agent
Hello!
Excellently posed question!
1. Without any NDA (non disclosure agreement) and without any oral agreement to not disclose, etc., there is little or nothing that you can do. Obviously you "volunteered" the report and by doing so, any hint of "confidentiality" vanished in the process. Further, there is no proprietary interest or secrecy in that type of document in the absence of a writing to that effect.
2. There may be some "rule" with the local Realtor association, but beyond that, looks like you will steer clear of thse "real estate professionals" in the future.
I hope you find a house that meets your criteria.
As an aside, you are probably MUCH better off hiring a really good licensed general contractor and pay him/her more than an "inspector" usually gets. I have found that most inspectors today are a little lazy, don't kick the tires and try their best to get in and get out because they are so busy. Hire a GC and instruct them to look in every corner and find stuff wrong. Encourage them to do a good job that way. Also, if you are using a broker, have the broker also do the inspection with the GC and you--ask questions and ask the sellers to give you any and all receipts for any type of repairs, maintenance or just "sprucing up" prefatory to listing the property for sale.
Make sure that the Disclosure form is completely filled out. Canvass the neighborhood and see if there are other homes under repair or remodelling--a dumpster in front is an invitation to knock on the door! Ask if there is a "tract wide" problem. Do your own investigation--be your own detective. Buyer beware!
I have done a lot of litigation in these areas and I have given you million dollar advice!
Sincerely,
Mark Geyer
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