Legal Question in Real Estate Law in California
Seller disclosure liability
The home my husband and i recently purchased has major sewer line problems that were not disclosed before the sale. The line is almost completely destroyed by tree roots for about 10 feet. We had been living in the house for about a week when we noticed the waste was all coming out of a check valve on the side of the house (low/no traffic area). The cap to the valve had been removed and when we replace it, the waste backs up in our house. The previous owner had inherited the house from his mother and been renting it out, I'm not sure if he ever lived there. Do we have any case against him? Would we have to prove he knew about the problem? It's going to cost us 10-15K to fix the line because it will require digging up the sidewalk and possibly some of the street. Is it worth taking legal action against him?
3 Answers from Attorneys
Re: Seller disclosure liability
The legal issue is, obviously, who is ultimately responsible for the 10-15K repairs.
Based on your facts, it may not be the previous owner. There is a duty to describe hidden defects, but he/she may not have known about the sewer problem.
Mr. Whipple has indicated other options regarding provisions in the contract, plus ramifications of dealing with possible agents.
You need a local real estate attorney to discuss and pursue your options.
Re: Seller disclosure liability
You may have a case and it may be worth it. I'd have to discuss the case with you in detail to have a better understanding of the strength of your case.
You may be able to recover attorney's fees, which would make your case that much stronger.
Feel free to contact me to discuss.
Re: Seller disclosure liability
The liability of the seller is doubtful. Someone who hasn't lived in the property has only a limited duty of disclosure. If there is an attorney fee clause, your risk of suit is increased, because if you lost you would have to pay the fees of the seller's defense attorney. A final consideration is whether there were agents/brokers involved; they have an independent duty to investigate and disclose. The buyers' agent and the seller's agent both have duties to the buyer, but they differ. Your own agent is more obligated to investigate on your behalf, while the seller's agent has some rather general disclosure duties.
I would also look at the contract to see if there is a mediate-before-sue clause and/or an arbitration clause initialed by the parties. These could affect your strategy.
Finally, a halfway measure might be to have a lawyer write a demand letter and see if a settlement is offered. Later on you could decide whether to sue or not.
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