What to do when a Seller Fails to Disclose a Home Defect?

What Does California law Require a Seller Of a Home to Disclose?

California law requires any seller of a property to give potential buyers an accurate depiction of its condition, as well as disclose all known defects. Any agent or entity that sells a property and knowingly hides a defect to a buyer could find themself in legal trouble. 

The seller must know about the defect or should have reasonably known about it to disclose it. This creates a grey area where sellers avoid fault for not disclosing defects. For example, a buyer may argue the seller knew about raccoons, while the seller may claim the issue arose post-sale.

What Defects Must be Disclosed?

Given the law’s broadness, the seller must disclose countless defects in a real estate transaction. State and federal law outline these defects. Some common defects that must be disclosed include:

• Any structural issues
• Water and plumbing defects
• Pests, such as termites
• The presence of mold or dangerous substances

Check your state’s laws to see if your state requires the disclosure of other specific defects. California requires sellers to disclose if a home is in a flood zone. It also mandates realtors to disclose “stigmatized defects,” like a death in the home. This applies even if the defect didn’t affect the property’s condition.

What Can I do If a Seller Didn’t Disclose a Home Defect?

Situations where sellers withhold information about problems with a property are not uncommon. However, if you purchased a home and later discovered undisclosed defects in the property, you have a right to defense and compensation.

Step 1 – Gather evidence. The first step is to document the existence of the defect. This could be:

• an independent inspector’s report
• photographs
• witness statements
• correspondence with the seller

If you have evidence that the seller knew about the problem but intentionally hid it, your chances of a successful refund increase.

Step 2 – Contact the seller. The first step is to send a written complaint to the seller. The letter should describe the defect and any damages. Sometimes sellers agree to settle disputes voluntarily. This is done to avoid litigation.

Contact KAASS LAW

If the seller refuses to admit fault, contact KAASS LAW. We can help you:

• assess the seller’s legal liability
• calculate damages
• prepare a claim in court
• protect your interests in negotiations or in court.

What Damages Can You Recover?

If the court finds that the seller breached the duty of disclosure, you can recover:

• compensation for the cost of remedying the defect
• consequential damages
• rescission of the transaction

In cases of intentional deception, the court may award punitive damages. For details on such claims, see California Civil Code Section 1102.

The Specifics of California law

It’s important to realize that hidden property defects involve more than just physical problems. They can also involve psychological factors. For example, the seller must disclose if there has been a death in the home within the last 3 years. Even if the home is technically in good condition. You can learn more about this in California Civil Code 1710.2.

Time Limits for Filing a Lawsuit: When do I Need to Act?

Remember that your right to file a lawsuit has a time limit. In California, different time limits apply depending on the type of defect. For example:

• For latent defects. The time limit is 4 years from the date of discovery.
• For fraud. There is a separate time limit of 3 years from the time you became aware of the breach.

In any case, the earlier you seek legal help, the greater the chance of a quick resolution of the case.

What If the Seller Was Not the Owner?

Sometimes a property is sold by someone other than the owner. If this is the case, it is important to find out if the person who sold the property was aware of any hidden defects. California law requires all parties to the sale to disclose material information about the condition of the property. Failure to do so can result in civil liability.

When Is a Collective Claim Possible?

In cases of new home purchases in condominiums or cottage communities, buyers are faced with the same defects. In these situations, it is possible to file a class-action lawsuit against the builder or seller. You can learn more about this mechanism on the California Courts

Seek Legal Advice

If you suspect that the seller has hidden defects from you, do not delay. KAASS LAW will help you:

• assess the situation
• calculate potential damages
• file a claim within the law

Call us today at (310) 943-1171 for a free consultation.