Legal Question in Real Estate Law in California

Re: Agent didn't disclose unpermitted bedroom

Maybe. It would depend upon whether the agent knew, or should have known, the history of the second bedroom, whether it was your agent or the seller's agent, whether the seller was in a position to know the truth, whether the misdescription appeared in writing anywhere or was just spoken, and the quality of your proof. It may also depend upon whether the unpermitted room is totally unpermitted or merely not permitted for use as a bedroom due to lacking a closet, or an inadequate septic system, and the like. An attorney considering taking the case would review all the disclosures and advertising, and look at the public record, to determine the nature and extent of the deception and see if there was any offsetting disclosure buried in the documents.

There is also a statute of limitations problem lurking here. In general an action for fraud or breach of a statutory duty (to disclose, or to investigate and report) must be brought within three years of the fraud or breach, or its discoverability. If you miss that deadline, maybe a suit for breach of a written contract could be brought against your own agent, but not against the seller's because you're not in contract with him/her.

Consult a local real esate lawyer for a free initial discussion of your chances of winning and collecting and a frank discussion of whether it's worthwhile.