Purchasing a home is often one of the biggest investments individuals make. California law requires sellers of real estate to disclose any material defects or problems with a piece of real estate.
When you purchased a home and discover a seller failed to disclose material defects, you could be forced to pay for unexpected repairs. Material defects could also mean safety issues, causing you to be displaced from your home while they are repaired. In a worst-case scenario, the defects could make your home uninhabitable.
Seller disclosure requirements
A seller must complete a discloser form as part of a real estate transaction in California. They are required to disclose any currently known material defects with the property, as well as past defects, even if the defect has since been repaired.
Examples of defects include problems with any major systems in the property, such as electrical or plumping systems. Sellers must also disclose any environmental hazards, such as proximity to flood zones or a location in an area prone to earthquakes. Additionally, they must disclose any current zoning violations or legal disputes impacting the property.
Legal remedies for failure to disclose
When a seller lies on a disclosure form, they can face legal consequences. As a buyer, you can file a lawsuit to recoup your financial losses. You can typically receive compensatory damages, designed to compensate you for your losses. Examples include the cost of repairs and depreciation in the property’s value.
Depending on the circumstances of your case, you may also receive punitive damages. These are meant to punish the seller for their deceit and discourage them and other sellers from engaging in the same behavior in the future. You are more likely to recover punitive damages if you prove the seller intentionally misrepresented facts.
You can avoid failure to disclose issues by having a property inspection done before closing on the property. Carefully review the inspection reports and ask questions on anything you do not understand. You should also review the property’s history to look for any prior issues that do not show up on the seller’s disclosure.