Real Estate Disclosure Obligations That Buyers And Sellers Should Be Aware Of.

If you are buying or selling a property in California, the primary statute that you need to be aware of is California Civil Code Section 1102.6, also known as the Real Estate Transfer Disclosure Statement. It requires the seller to disclose of any appliances or components of the property that are inoperable, malfunctioning, or significantly defective. The disclosure requirement is incredibly broad and includes appliances, electrical, plumbing, structural, walls, insulation, roof, foundations, slabs, yard drainage, etc. It requires a seller to disclose of improper construction, leaks, mold, and other conditions that would impact the value and desirability of the property.

The seller's agent also has an obligation to conduct a visual inpsection of the property and to identify reasonably discoverable conditions. A seller's agent cannot put his or her head in the sand and ignore problems. A seller's agent cannot rely on the representations of the seller alone.

The seller's failure to disclose of defects or other conditions that would negatively impact the value and desirability of the property can subject himself or herself to serious liability, including punitive damages. The agent's (sellers) failure to perform a thorough inspection can result in significant liability exposure as well.

Sometimes it is difficult to prove that a seller or seller's agent failed to disclose of certain conditions. However, sometimes it is very easy. For example, if the seller made a warranty request to the developer for repairs or was aware of neighbors being involved in a construction defect lawsuit for issues that concerned the neigborhood in general (Example: improper soil compaction, ground water problems, chinese drywall, etc.), it may be easy for an upset buyer who laters discovers the undisclosed defects to successfully sue the seller or seller's agent for failure to disclose. A simple subpoena to the developer is likely to reveal a prior warranty repair request that the seller made to the developer. A quick conversation with a neighbor might reveal the seller's prior and undisclosed knowledge of certain problems or defects. Neighbors tend to know a lot about one another.

I am attorney Robert A. Von Esch IV. I represent individuals and businesses in a variety of construction defect and real estate matters. If you have any questions, please feel free to contact me via http://www.voneschlaw.com/.