Legal Question in Real Estate Law in California

Hi,

I just received a summons and complaint regarding a residential property I sold in May of 2010. This person also filed a complaint against the title company. The plaintiff alleges I willfully concealed defects in the property. The house was sold in "as is" condition because it was unfinished (large 3 story Victorian style house). I ran out of money some years back and could only work on the house a little at a time. During our walk thru I pointed out everything I knew about. Most things were obvious like no railings on the front staircase, unfinished moldings no floor coverings in the front parlors etc. Since the sale of the house the well pump went out, the septic tank needed to be replaced also there was an issue with the neighbors driveway. The plantiff has clear title and title insurance but he wants to void this contract be reimbursed for out of pocket expenses plus pain and suffering. He is current on payments. HELP!! Laura


Asked on 7/11/12, 7:02 pm

3 Answers from Attorneys

Since you haven't asked a question, I'm not sure what help you are looking for in a Q&A website. Since you have been sued, you need to hire a lawyer to defend you, or there is a good chance you will lose even if you have a right to win under the law. It doesn't seem he has much of a case, but that doesn't mean he can't win if you don't have a lawyer making sure the weakness of his case is properly presented to the court. With the title company in the case, you will be able to ride their coat tails to some extent to save money, but there are aspects of the case you will have to rely on your own attorney for. If you would like to set up an initial consultation in one of my Sacramento facilities, I would be happy to meet with you and discuss your options for representation.

Read more
Answered on 7/11/12, 8:17 pm
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

First, as you probably know, receiving a summons and complaint starts the clock running. You need to file and serve a responsive pleading (usually, an answer) within 30 days of service, or risk the possibility that a default will be entered against you.

Next, a question arises as to whether either party used an agent. I assume not, or you would have mentioned it. Another fairly significant item might be the extent of your actual knowledge of the condition of the property. Non-resident owner/sellers are not expected to know as much as residents.......however, if you were acting as your own remodeling contractor, that point might not go in your favor.

A sale "as is" will normally relieve the seller of liability to the buyer for undisclosed defects in the property, so long as the seller has not engaged in fraud or knowing misrepresentation. While not a perfect defense, if the offer to sell expressly stated that the sale was "as is," this should be adequate. However, I'd expect to see the words "as is" expressly included in the offer or the sales contract.

The fact that the building was under reconstruction at the time should be in your favor, except that to the extent there was truly new work, that could be a complicating factor because new construction, as opposed to resales of existing buildings, carries implied warranties that the work was properly done. I point this out as a possible complication, but probably not a problem.

The things that have gone wrong (well pump, septic) since sale are all items that may fail at any time, and you are not responsible to warranty them into the post-sale period. As far as the neighbor's driveway, is it an easement issue? If so, when did the neighbor first complain, and when did you first know or suspect that there might be an issue? This too is probably a defensible matter, but I cannot say for sure based on very limited information.

Unless there are substantial additional facts in the plaintiff's favor, this looks like a winnable case, although there are some little pockets of uncertainty.

I had some previous correspondence with a Laura F. in Chico regarding a business matter... are you the same person? In any event, I have a daughter in Chico and another case in Butte County Superior Court, and would be willing to assume the defense of this matter for a quite reasonable fee and no charge for travel to and from your location or the court. Please contact me directly if interested.

Read more
Answered on 7/11/12, 9:25 pm
Joel Selik www.SelikLaw.com

I would advise finding a qualified real estate attorney in your area. This attorney can see if there is insurance that may cover your defense, who else may need to be cross complained against (counter sued) and other aspects to properly handle this lawsuit. If you need help finding an attorney in your area, please email me directly, at no charge. You may also wish to contact your communities bar association to see if they have an attorney referral service.

Read more
Answered on 7/12/12, 7:17 am


Related Questions & Answers

More Real Estate and Real Property questions and answers in California