Legal Question in Real Estate Law in California
Material Disclosure
I purchased a brand new house from a builder less than 2 years ago. As I was new to the town, I didn't know a lot about the area, and I also made the mistake of not calling to the Police Department before purchasing it, to know about crime rates in the area.
I am now trying to sell my house, and my realtor said that I have the obligation of releasing the information that I know (about houses being broken into down the street) with potential buyers.
Was the builder's obligation to provide me with these Material Disclosures about the area's crime rate? According to the law, is there anything I can do against the builder?
1 Answer from Attorneys
Re: Material Disclosure
As a seller, you are obligated to disclose all facts which affect the value and desirability of the property, including surrounding nuisances and neighborhood conditions which you are aware. However there is not bright line rule on when and to what extent a seller must disclose neighborhood conditions. Since you have actual knowledge of neighbors being broken into, I believe that your realtor, at a cautionary measure, is correct in having you disclose this fact.
To your question � can you get anything from the builder for not having disclosed these conditions? Perhaps, but it would very difficult case to prove. First you would need to show that a similar level of surrounding criminal activity existed prior to the sale to you and secondly, that the builder or his agent knew of those conditions. Since the builder presumably did not live in the area, proving that may be very difficult. In addition � you may want to look through your purchase documents. It is not uncommon to see general disclosures from mass production builders about neighborhood conditions with a suggestion that you, as a purchaser, investigate further.
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