Legal Question in Real Estate Law in California
Disclosure process
My realtor said a neighbor spoke to her and made a statement about the house that she was selling on my behalf. The statement went as follows: ''Someone told me that a long time ago that house use to be a drug house.''
My question is that in this case, does the real estate agent need to disclose this to the prospective buyer.
Thank you,
--name removed--
2 Answers from Attorneys
Re: Disclosure process
In my opinion, an unsubstantiated report from a source that isn't firsthand (i.e., "someone told her") and refers to things that happened long ago (a) doesn't have to be disclosed based upon this conversation alone, but (b) imposes a duty to investigate upon the agent. The duty to investigate would probably be satisfied if the agent checked with the police and maybe a local merchant or two, or maybe tried to track down the source of the report and determine its truth or falsity. If the secondhand report appears to be true, disclosure is probably necessary.
Re: Disclosure process
I'd be more concerned with the nature of the neighborhood now, and also whether the neighbor's a busybody who eventually will cause you trouble butting in where her nose doesn't belong.