“Let the buyer beware” – before California and other states set up certain homebuyer protections, these words haunted many purchasers who discovered major defects with their home after moving in, and were left without recourse against the seller. Under the harsh legal principle of buyer beware, a seller has no legal obligation to disclose defects to the buyer. That’s not to say that sellers are protected when they actively cover up hidden defects or make false representations, but if, for example, the seller simply failed to mention that the home is prone to flooding or landslides, then the burden is on the buyer to discover defects. While this is still the law in some jurisdictions, California and many others have abandoned this principle and now impose legal obligations on the seller in order to protect homebuyers.
In a typical real estate purchase, California law requires sellers to disclose certain defects that they knew or should have known about, and the seller must provide the buyer with an additional disclosure statement. Not only that, but the seller’s real estate agent must visually inspect the home and disclose any information that can materially affect the property’s marketability. These types of problems can hurt resale value and seriously affect a buyer’s ability to sell the real estate later on. So what must a seller disclose? Examples include leaky roofs, defective plumbing, electrical problems, building code or zoning violations, construction defects, insect infestations, and other problems or conditions. Legal problems that must be disclosed include encroachments or easements, liens on the property, or issues with title to the property. At times, the seller’s actions may even amount to fraud.
In addition to the mandatory disclosures under California law, when negotiating the deal a seller may decide to go beyond the minimum disclosure requirements and include warranties in the real estate purchase agreement. Unlike with the state law disclosures, if a warranty in the contract is breached, the seller can be held liable even if the seller had no reason to know that the representation was false. If you’ve discovered defects in your home after moving in or have been defrauded by the seller, contact our skilled real estate lawyers as soon as possible, before any time limits on your claim expire. We’ll discuss your options and help you obtain compensation to repair the undisclosed defect or, in some cases, rescind the purchase. Similarly, if you’re a seller who has wrongfully been accused in a nondisclosure case, we’ll evaluate the circumstances and work toward resolution. Contact San Diego Law Firm’s experienced advocates at (619) 794-0243 for help with any real estate dispute.
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