Legal Question in Real Estate Law in California
Disclosure Limits
I would like to know if there are any limits (years)on disclosing information when selling a house. I recently purchased a house and have found 2 costly problems that the owner failed to disclose.
1. Previoulsly removing a bee hive from inside a wall
(I had to remove a similar hive as the bees came back)
2. A 2nd floor deck that is improperly sloped so that every time it rains water pools or runs toward the house instead of toward the drains.
I am taking care of the problems however I'd like to know if I have any recourse with the previous owner and if so then how long do I have?
3 Answers from Attorneys
Re: Disclosure Limits
The best advice when selling a house is to disclose any and all information which you have that could affect the buyer's decision to buy. Basically, the more information you give, the less likely you are of being held liable for not disclosing something.
It sounds like you are asking how long after discovering a problem you have to sue the previous owner. Generally, if you are speaking about a "latent defect" (one that is not readily aparent from a reasonable inspection), the statute of limitations would be from 1 to 4 years, depending upon the theory you are suing under, and assuming that you are not dealing with a builder defect.
Whether you would be able to win a lawsuit based upon bees returning to nest inside of a wall is uncertain, although a drainage problem may be more easily proven. You should probably consult with an attorney in your area whose practice emphasizes real estate and real estate litigation. The longer you wait, the more likely it is that you will be barred from pursuing your claims.
Re: Disclosure Limits
Failure to disclose known defects would fall into the general category of fraud, for which the statute of limitations is three years. However, there is also a two-year limitation for actions against a real-estate broker for breach of their professional (statutory) duties, and if the agent or borker were to be named as co-defendants you would want to beat that limit. See Cal.Civil Code �� 2079(a), 2079.4 and Code of Civil Procedure � 338.
Determining when the statute of limitations starts to run is sometimes technical, and if you are going to sue it is always safer to refer the matter to an attorney as soon as possible, at least for evaluation of possible limitations problems if not for actual filing and service of the suit.
In order for a seller's failure to disclose to be actionable, it must involve (1) something the seller knew, that (2) materially affected the value or desirability of the property, and (3) was unknown to and not readily obvious or easily discoverable by a buyer exercising ordinary powers of observation. An early consultation with a local attorney would also allow you to get a better handle on the substantive merits of your case.
Re: Disclosure Limits
Mr. Whipple is correct that a seller must disclose any material defects he knows about, especially those that may not be obvious to the buyer. Failure to do so may constitute fraud, and is subject to the 3 year statute of limitations.