Legal Question in Real Estate Law in California
Builder Non-disclosure
We won the lottery to buy a home by Shapell Ind. Based on the information provided verbally by the sales office, we selected a site with an open area/community park in front of the house. When we signed the purchase contract 2 weeks later, we were told that the park has been changed to a community pool. We signed a fence drawing showing the pool layout as requested. Last weekend, we noticed a foundation had been put in park/pool area, only about 30 feet in front of our house. When asked, the sales office told us that it would be for the pool restrooms. This structure was not shown in the fence drawing we have signed, but the builder said that the only option we have is to withdraw from the contract. If we have to choose another house in the same community, we would have to win another lottery at the future releases and pay at least $80K more. We could have selected a differect lot should we knew of the actual plan for the open area. Do we have a legal case against this builder for non-disclosure? Please advise!
1 Answer from Attorneys
Re: Builder Non-disclosure
Yes, I think the facts you've described amount to a pretty good case; the builder or sales rep failed to disclose a matter that materially affects the value and desirability of the property, and the facts of the matter were known to (or discoverable by) the seller and not by you.
You should have this opinion confirmed by a local real estate lawyer who is able to view the site and look over the sales documents in person (and, hopefully, without charge, on the premise that you would retain him/her if it looks like you have a good case).
It probably would not be necessary to file and prosecute a lawsuit. Your lawyer should succeed in getting you a fair settlement by pointing out the disclosure failure, or at worst the filing of a suit should bring about an out-of-court settlement.
This answer assumes that I have all the material facts and that the disclosure wasn't made in some other document that you received but overlooked.
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