Legal Question in Real Estate Law in California

Re: Hidden CC&R Violation

Without knowing how much money you're going to be out by adding rugs or carpets that comply with the CC&Rs, it's hard to give you practical advice.

From a legal theory standpoint, I'd say you do have a pretty good case against the previous owners, and perhaps against their agent and broker and your agent and broker. The case weakens, however, if the HOA Board really did say no action was required, then reversed itself - that could render the mistake in the disclosure innocent. So, maybe a first step is to see if there are meeting minutes that back up the seller's disclosure.

I'm somewhat doubtful that the HOA Board can be held to its mistaken interpretation of the CC&Rs, by "estoppel" or otherwise, but this theory shouldn't be overlooked, if the facts turn out to support it.

As to locating the sellers, I'd say hire a good investigator if that step is warranted financially; there's a pretty high success rate in using pros to track down folks who've moved. Locating the brokers and agents will be easy and they may know where the sellers moved.