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?


Asked on 2/06/07, 11:48 pm

1 Answer from Attorneys

Steven Lynes Lynes & Associates

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.

[The statements and opinions provided above are an informational service to the general public. Since this reply is based upon an incomplete description of facts, this email should not used as a substitute for legal advice from a qualified and fully-informed attorney. Moreover, these communications are intended for use by the public. As such, this email does not constitute a confidential communication nor does it create an attorney-client relationship with Lynes & Associates or any of its members.]

Read more
Answered on 2/07/07, 9:57 am


Related Questions & Answers

More Real Estate and Real Property questions and answers in California