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?


Asked on 9/07/01, 3:22 am

2 Answers from Attorneys

Bryan Whipple Bryan R. R. Whipple, Attorney at Law

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.

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Answered on 10/25/01, 5:09 pm
Norman Gregory Fernandez, Esq. The Law Offices of Norman Gregory Fernandez & Associates

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.

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Answered on 10/25/01, 9:13 pm


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