Legal Question in Real Estate Law in California
Real-estate case: I recently put a bid for house with no contingency clause and it was accepted. I did the down payment 20% and Bank loan is approved waiting my signature and closing date. I did have very little information being a first time home buyer and i went with my agent's suggestion which now i believe was wrong.
My question: Now i find the house does not have the centralized Air Condition Unit although it was documented in every document (MLS listing, Seller's disclosure document and insurance - seller is purchasing for first year for us). I raised this concern and I am not getting any support. May I know what are the options I have and what were the responsibility of my agent, is he liable for anything or he is there just to make commission?
Please let me know.
1 Answer from Attorneys
A couple of additional questions come to mind in trying to formulate an answer for you. First, to what extent is the property lacking in air conditioning as described? Is it totally lacking in air conditioning, or is it equipped for central air (ducting, etc.), but the compressor/condenser unit is absent from its enclosure? The way your question is worded tends to suggest the latter, while the former would be a much more expensive proposition. Next, in any case involving real-estate sales disclosures, the question arises as to how much the seller is presumed to know about the property being sold. The duty to disclose is much higher when, for example, the seller has lived in the house for decades, than when the seller lives in another part of the world and acquired the house by inheritance a couple months ago, or where the seller acquired the property as the result of a foreclosure.
Now, trying to advise you. First, I'd get an estimate or two as to the cost to bring the house from its present condition to the as-described condition -- that'd be your loss on the deal. Knowing this amount will allow you to negotiate, to determine whether a lawsuit would be worth while, etc. Then, try negotiating with the seller, the seller's agent or broker, and your agent and/or the broker he/she works under.
A lawsuit probably should be a last resort. Someone here has made a mistake, more likely than anyone is trying to "pull a fast one." Oh, also, look to see if you checked any agreement to arbitrate boxes in the purchase contract........arbitration might be a cheaper and quicker way to get resolution. But I really think this should be settled by negotiation.