Legal Question in Real Estate Law in California
Homeowner Liability?
In the state of CA, a seller sells a residentual home, upon the sale is both a cleared pest inspection and home inspection report/documents. 6 months later the buyer tears up the 2nd level floor and claims there to be dry rot. Buyer insues the Seller is responsible even though upon the sale 6 mo. prior there was no indication of any water damage via a pest and home inspection. Is the pest company, the home inspector/company, the seller or the buyer liable? Again everything was disclosed upon the sale of the home and the Seller's had absolutely no knowledge of any dry rot...who is liable for the damages incurred to fix the dry rot?
Thank you.
2 Answers from Attorneys
Re: Homeowner Liability?
To the list of possibly-liable parties, add the seller's agent and the buyer's agent.
The whole purpose of lawsuits is to figure out who is liable. Here, the evidence presented by plaintiff and various defendants would be reviewed by a judge or jury to see whether there was a failure to make required disclosures, lax inspections, etc.
My guess is that the buyer is solely responsible for hidden damage of this kind, but the opposite could be proven by facts re the contracts, disclosures, visibility of the defects, and a host of other factors.
Re: Homeowner Liability?
I agree with Mr. Whipple. The real estate broker and agent are responsible only for disclosing conditions that are discoverable by a reasonable inspection. The inspection companies usually limit their liability by contract and disclaimers. If the Seller did not know of the dry rot, he is not liable, either. However, proving that in court may not be simple.
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