Legal Question in Real Estate Law in California

You should speak to a competent real estate attorney who has handled cases involving fraud and disclosure in purchase and sale situations. I would also suggest bringing the relevant paperwork Usually a home inspector is hired by the purchaser, not the seller, so I doubt that you have a case against the seller, and it does seem that you were aware of the cracks, but not the significance of the cracks.

Unless you have some evidence that the sellers knew the cracks were a serious issue and failed to disclose what they knew, you have no case against the sellers. If the inspector was negligent in not discovering and reporting the magnitude of the problem, you have a case against them. If the house is less then 10 years old and the cracks are the result of a construction defect, then you also have a case against the builder.

You may also want to consider whether any of the real estate professionals involved in the transaction violated a duty to inspect and disclose. They do have certain duties to the buyer to inspect and disclose. Whether you have a case against the seller may depend upon whether the seller had actual knowledge of the problem. Whether you have a case against the inspector may depend upon (a) the exculpatory clauses in his contract, and/or (b) whether you can prove actual negiigence in not reporting the seriousness of the cracks. Finally, a case against the builder will depend upon (a) the ten-year limitation, (b) proof of its negligence at the time, and (c) the builder's continuing existence and its or its insurer's or bondsman's ability to respond in damages.