Legal Question in Real Estate Law in California
Fraud / failure to disclose / misrepresentation
purchased of a new house, listing & selling real estate agent failed to disclose problems with the house. Builder had received many notices fr bldg & safety dept to fix gas pressure to be able to install gas meter. Buyer's real state agent advised her client not to have a home inspection, because this was a new home, she did not believe there was any problem. Buyer was a 1st time home buyer that knew nothing about buying a house, and followed her agent's advise. Selling & buyer's real state agents work for the same broker. House had been in escrow twice before, but escrow did not go thru. Buyer asked her real estate agent many times why escrow did not go thru two times, but her agent will just avoid answering her concerns. Buyer is now afraid that there are other problems with the house. Also the house cabinets were not installed yet, and real estate agent affirmed to the buyer that they will be installed, but they were not, this was listed on the disclosures. Buyer agent' failed to represent her client, buyer feels that her agent was aware of the problems with the house and set her up to buy a house that was not in habitable conditions. Buyer will like to do an inspection now, What is your legal advise? thanks.
1 Answer from Attorneys
Re: Fraud / failure to disclose / misrepresentation
The seller and the seller's broker (and agent) have a duty to disclose known or reasonably suspected defects, and, with respect to certain matters, to make an investigation for problems that should be disclosed.
Your next step depends upon whether the known or the suspected problems are a larger monetary problem, and the size of each problem. If we're talking tens of thousands of dollars, your very next step should be to see a local real-estate lawyer for a consultation.
If the amount of loss, either loss of property resale value or cost of repairs or both, is likely to be under about $10K, I'd say consider going to small claims court, making a written demand on the seller's broker, paying for an inspection yourself, one or the other or perhaps all three. Maybe get the inspection first, to verify your opinions.
Another step to consider is lodging a complaint with the California Department of Real Estate.
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