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.
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:
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.
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:
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.
If the seller refuses to admit fault, contact KAASS LAW. We can help you:
If the court finds that the seller breached the duty of disclosure, you can recover:
In cases of intentional deception, the court may award punitive damages. For details on such claims, see California Civil Code Section 1102.
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.
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:
In any case, the earlier you seek legal help, the greater the chance of a quick resolution of the case.
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.
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
If you suspect that the seller has hidden defects from you, do not delay. KAASS LAW will help you:
Call us today at (310) 943-1171 for a free consultation.
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