Legal Question in Real Estate Law in California

We have several issues with the house we purchased in Dec 2007 and started occupying in Jan 2008. We discovered several issues that our agent (the buyer's agent) is responsible for, mainly from the point of view of negligence and complete lack of due diligence. We spoke to him and he has owned up to his responsibility but he has said he is unable to pay out of his own pocket and that his Errors and Omissions Insurance will take care of any settlement.

Is there any time limit within which an Errors and Omissions claim needs to be filed ?

Can he simply contact his Insurance company and inititiate the Errors and Omissions clause since he accepts his negligence and lack of fiduciary responsibility in this transaction?

Any other advice on what course of action we need to take would be highly appreciated.

Thanking you in advance.


Asked on 10/15/09, 2:11 am

1 Answer from Attorneys

He should tender the claim to his E&O carrier and see what they say. You may have up to three years to sue if you need to, but I would strongly recommend not letting it go past two years from when you discovered the negligence. You can always get an action on file and then dismiss it if you are made whole by the insurance, but if you blow the statute of limitations you're out of luck.

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Answered on 10/15/09, 12:58 pm


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