Legal Question in Real Estate Law in California
termite damage
we purchased a house on the agreement that it had rcvd final termite clearance. upon selling the house five months later we have found it did not. the seller agreed to spend $1500 on termite repair and replacement and agreed to get final termite clearance. they only spent $893 for fumigation. upon selling the house a new inspector found the same areas were not repaired properly. in fact, our contract to buy the house said that the areas of damage must be replaced; they were repaired (shoddily).
do we have legal recourse against the seller should they find additional damage that would have been caught if they obtained the final termite cleanance as they were supposed to?
lastly, the seller has sent us a check for $607 (difference from $1500-$893). on the check they wrote ''cashing this check releases us (seller) from further reponsibility'' (should further damage be found when the termite inspector comes to our house on monday). is it true that cashing the check would release them from further damage.
eagerly await your reply.
regards,
2 Answers from Attorneys
Re: termite damage
Signing the check would release them. If you go the route I think that you are contemplating, i.e. the seller, realtor and inspection people, it will be a war you would wage for years and you would probably get nothing. The seller agreed to $1,500 and is coughing up the balance he/she owes per the sale agreement. As for the inspector, that may be another story as he/she was paid to give you all the information to make an informed choice as to whether or not you wanted to buy. You would have a negligence action, but that means a standard of what a reasonable inspector would have found under like an similar circumstances. So it is a big web of nightmares and expense. If you like the place, take the money and make the repairs the way you want. I was in real estate before law and continue to do real estate matters. It is an economic crap shoot for you and you want to keep it to a minimum. Hiring a lawyer for the fight would not be on a contingency. I would get $250 per hour for such work. My folks always said don't throw good money after bad. Buying a house is like buying a used car. The older they get the more work they need. (like me) Make your repairs and enjoy your home and family. Happy holidays!
Re: termite damage
Things are a little different in California.
First of all, did you receive a final termite clearance? Who did the work, the pest company or the seller. What, exactly, did he agree to? Was the agent negligent in following up on paperwork?
Generally, a CAR contract calls for attorney fees, but if the matter is within the area of small claims court, it would need to go there. Do not endorse and cash the check until after the pest man comes out. What inspector is coming out on Monday, a new one or the original one? If the original one is there, you may want the new one there, too.
You won't be throwing good money after bad. If the seller, inspector or agent messed up, go after them for your costs. The amount is small enough that, if it is a reputable real estate company, they will pay the difference.
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