Legal Question in Real Estate Law in California
I purchased a foreclosed home 11/2009. first time homebuyer, FHA 30 year fixed loan. My realistate agent unfortunately was not very helpful with the entire process. When I purchased my home I did a home inspection which came out good, but did not do a termite inspection. I did purchase the home "as is" Now 2 months later I have found out that a termite inspection was done in July 2009, it was ordered by the selling agent. It states that there is drywood termites and about $6000.00 worth of repairs and termite tenting is needed. This report was never disclosed to me, I had no clue that my house had termites. Is it against the law for the selling realistate agent or my agent to withhold this information from me, when they knew there were termite problems. Could one of them be held responsible for the repairs?
2 Answers from Attorneys
A buyer's or seller's RE agent is obligated to disclose any material information known. You'd have to prove one or both knew, or should have known. If you can, then you have a claim that you can make against the withholding agent / broker for the cost of repair. You will be subject to the defense claim that you were contributorily negligent in not obtaining your own inspection before purchase. You could sue in Small Claims court if settlement attempts fail.
The seller's agent was under a statutory obligation to provide that report to you or your agent. Your agent was under a duty of care under the principal of the standard practices in the industry to ask for any reports regarding wood destroying organisms. One or both of them should pay for your repairs. Mr. Nelson is apparently unfamiliar with real estate disclosure law, by the way. There is no contributory negligence defense to a breach of duty to disclose action against real estate agents, unless the defective condition would have been apparent to you as a lay person upon simple visual inspection. It does not apply to wood destroying organisms, which by definition are inside the structure itself and therefore not visible.
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