Legal Question in Real Estate Law in California
My wife and I purchased a home as an investment property in Palm Desert California back in 2018. The listing showed the home as a duplex with a total of 5 bedrooms and 3 baths. When we renewed our short term rental permits this year, the city advised us that at our house is only listed as a 4 bedroom 2 bath and that we have to submit proper permits to the city to be in compliance. A city inspector came by and told us that there are unpermitted room additions and that the additional room would not qualify as a bedroom thus forcing us to reduce the number of occupants we can accommodate. From what I understand the seller did not properly disclose unpermitted work, and misrepresented the size and number of bedrooms of the house. My main question is how strong is my case? Is it worth it for me to retain legal council and go after the seller? If I win, how likely would I be to actually collect on a judgement? We've already pulled comps from that neighborhood on the date we bought the house and it's roughly $160,000 over valued based on similar 4 bedroom 2 bath duplexes.
1 Answer from Attorneys
$160,000 plus lost future income is certainly worth pursuing, if the seller could satisfy the judgment. You should certainly at least consult with a local real estate litigation attorney.