Legal Question in Real Estate Law in California
Can I sue our real estate agent and inspector for failing to find major issues and selling us a lemon of a house? We were first time home buyers (in the house for 6 months) and our real estate agent referred us to the inspector. He missed a leaking roof that needs replacement, a possible crack in the foundation, a leaking sewage pipe under the house and other problems. Do we have any legal recourse?
2 Answers from Attorneys
You can always sue everybody involved, but you'll have to prove they knew of the defects. You also should have buyers insurance to fix the problems. If serious about pursuing legal claims, feel free to contact me if you think you can prove them.
Of course you can sue them, but what you really need to know is whether you are likely to win and collect damages.
If the inspection and sale took place six months ago, I'd guess we were in the dry season, and a roof leak would not likely be obvious. A "possible crack" sounds like a very uncertain defect. A leaking sewage pipe under the house also might not be obvious....if it were in plain sight it would probably be an inexpensive repair, and if not, the inspector is probably excused from not noticing it by virtue of his contract, which (probably) doesn't require him to inspect in hidden areas. So, the liability of the inspector is dubious. Also, their contracts contain every conceivable provision to limit their possible liability.
As to the agent and the agent's broker, if they were working for you there is a fairly strong duty to use their professional training and experience to represent you capably, and this includes a statutory duty to poke into this and that and inform the client of risks and problems. Nevertheless, real estate salespeople are not themselves inspectors, and it may not be within the scope of their duty to investigate and report roof and pipe leaks.
You did not mention also bringing suit against the sellers, who were under a duty to disclose defects of this kind if they knew of them, and as occupants (if they were), they are perhaps the most likely to have known about these issues. So, if you sue at all, you should consider naming them as defendants as well as the inspector, agent and broker.
Finally, you should review the purchase agreement and your contracts with the agent/broker and inspector for all applicable provisions, especially mediation and arbitration clauses and attorney-fee clauses, any of which might affect your ability or desire to sue.