Legal Question in Real Estate Law in California

Did you buy it from a private-party owner who lived in the house, or from a private-party owner who didn't live in the house, or from a financial institution at a foreclosure sale or as REO (repossessed property)? Did you employ an agent or broker? Did the seller(s) employ an agent or broker?

The answers to these questions may determine whether you have a case at all; who was supposed to make disclosures; who owed you a duty to check into things, etc.

If it were a sale by someone who occupied the house or otherwise ought to have known of the problems, you have a good case. Gather evidence, take pictures, save bills and line up your witnesses. The only real question is whether to sue in small claims or whether going to superior court is warranted.

Don't overlook agent and broker liability.

Finally, remember that even owners who were absentees, rather than recent occupants, might not know, and therefore would not be required to disclose, certain problems. On the other hand, tenants probably would have notified absentee owners about problems of this kind.