Legal Question in Real Estate Law in California

Real Estate

Hi,

We just purchased a house for $730K and according to the reports the house had minimal repair concerns, since we have moved in we have found major water damage in the bathrooms (will need floor repaired), uneven floors, seals broken in dual pain windows (moisture and mold growing on window seal), wall repairs in bedroom under leak area (we think a pipe broke within the walls), mold growing within walls in bathroom), 3 major cracks in the side of the roof, there are other minor concerns but these concerns will add up to lots of cash. We have contacted the inspector and are giving them a list of the concerns. Our agent told us that this inspector was assisting another inspector on the phone as he was conducting our assessment. We have also found out that there are two rental properties on the block and one is section 8. The non-section 8 renters have had the police over and are involved in domestic violence. We feel very frustrated, since we were hoping to sell in a 5-6 years when the market bounced back. Knowing this info. we would have looked for another location, were the sellers obligated to disclose section 8 and other rentals? How do you think this situation will play out? We are wanting them to correct the damage.

Lynn


Asked on 5/29/07, 3:32 pm

1 Answer from Attorneys

Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Real Estate

Inspection services are hard to sue and recover because they are accustomed to being hauled into court for alleged negligence and, over the years, have done their best to bullet-proof themselves by filling their contracts with disclaimers. However, that isn't to say they shouldn't be named as defendants, but read their contract and their report beforehand.

A better prospect is suit against the sellers and their broker for failure to disclose, and your own broker for failure to investigate and report.

Your chances on the water damage, etc. (physical defects) seem pretty good; someone must have known or should have noticed. On the neighborhood issues, that's more difficult; a seller is supposed to disclose any known fact that would materially affect a buyer's perception of value, but proof to the satisfaction of a judge or jury could be an uphill battle, both as to knowledge and materiality.

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Answered on 5/29/07, 4:11 pm


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