Legal Question in Real Estate Law in California
undisclosed defects...my rights
I purchased a 69 year old home a little over two
years ago. The Seller owned the home since
1972. The seller was an absentee owner. The
seller's listing agent and the seller's property
manager were the same person. My agent
worked in the same office as the listing agent.
During the escrow, I had both a building
inspection service check the property and a
termite service check the property. Neither found
nor suggested extensive termite damage.
Today, I had a contractor and structural engineer
inspect termite damage found in the balcony.
It's a complete demo. And one area has clearly
had termite repairs within the last five years. The
engineer is writing me a letter to this effect.
It's too early to know exactly what the repairs will
cost, but my contractor said it could be in the area
of $22,000. Then there is an add'l $3000 loss of
rent during repairs.
Any comments?
2 Answers from Attorneys
Re: undisclosed defects...my rights
The amount of money at issue warrants going at least as far as having an initial conference with an attorney. You should look for someone who practices in the area of real estate, perhaps with a sub-specialization (or relevant experience) in construction defect litigation.
I see possible liability on the part of the seller, the listing/managing agent, and the pest inspectors who failed to note and report the damage. Note that an absentee owner has a relatively light duty of disclosure, and proving professional negligence or malpractice against the inspectors can be difficult. Therefore, your primary focus should be the agents. I cannot predict your chances of success.
I also advise acting promptly in case there is a statute of limitations creeping up on you.
Re: undisclosed defects...my rights
I would get a consultation with an attorney on this matter.
The owner could be liable for failure to disclose, fraud, the inspectors could be liable for malpractice or negligence, etc.
The main issue would be whether the termite damage was done after the sell.