Legal Question in Real Estate Law in California
Sellers obligation of disclosure to buyer
Told listing broker & seller property had to support horse business. Both said property being used for many years as horse breeding/riding facility. Before escrow closed, checked cost of business license. Use Permit would be needed. Informed sellers, husband said he had business license. Contacted county, if business license was issued, no problem getting new license. Closed escrow, called PG&E to change name on service, property had 3 meters, 2 listed as commercial with rates being double residential. PG&E demanded deposit since property listed as commercial, but zoned agricultural/residential, regardless of being PG&E customers for over 35 years. Tried to get business license, sellers never had one. Use Permit costs min 10K if no requirements imposed. Looked into tax assessor/collector, revenue & dept of finance records to locate business license, turned up zero. Seller had conversation with investigator of tax assessor office who assumed seller had business operating when she drove by & saw property. This occured April, 2003 during negotiations. Seller told investigator horses & cattle were personal property. Shouldn't seller have disclosed the matter of the PG&E meters & not having business license?
4 Answers from Attorneys
Re: Sellers obligation of disclosure to buyer
Very probably and I have numerous other questions. Your brokers screwed up big-time also in that they did not make certain items conditional such as your obtaining the business license, and other matters before the sale was closed and/or subject to the obtaining of those licenses. There may be claims against your broker in any event you have numerous areas of rights which should protect you. The problem is though this is a business and if it is being taxed, charged the you're going to have to pay monies as a business rather than residential that is what he is an I'm not sure the you're damage is included in the higher prices. Remember, no one can be held responsible for failing to complete a fraud upon the government agencies. If you wish to consult with me I have handled real estate proms for over 30 years in the San Francisco Bay Area. 925 -- 945 -- 6000
Re: Sellers obligation of disclosure to buyer
I'm not sure about the PG&E accounts as a disclosure issue, but as to the business license and use permits issue, you have not only a failure to disclose required information, you have a downright fraudulent misrepresentation of a material matter.
This is all you would need to sue for all your damage. See Civil Code section 3343.
Any suit should include the seller's broker as a party.
You may be entitled to punitive damages.
Re: Sellers obligation of disclosure to buyer
Yes, as regards business license, as all concerned knew that it was material to you that property be amenable to use for particular purpose; here, seller actually provided false information. With regard to PG&E, it is not as clear, as your facts do not provide that seller was ever asked, and it is not clear that he was under a duty to disclose number and types of meters; if, on the other hand, he misrepresented these items, then these may also be the basis for a legal action.
Re: Sellers obligation of disclosure to buyer
Appears so, based on info provided. Would like to see all sale/purchase documents to provide accurate counsel. Don Holben 800-685-6950
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