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Real estate · Nondisclosure
Seller nondisclosure claims for home buyers
California sellers must disclose known material facts that affect a property’s value or desirability. If a seller hid a defect, pending construction, a permit problem or something about the property’s history, you may be able to recover what it cost you. Fernald & Zaffos represents buyers in nondisclosure cases in California and Nevada.
Leads this practice
Brandon C. Fernald · Founding Partner
Founded the firm in 2009 after seven years at Norton Rose Fulbright.
What sellers must disclose
California law requires sellers to disclose known material defects and facts affecting a property’s value or desirability. When a seller conceals a problem, a buyer can be left with a purchase they never would have made. Common concealed problems include:
- Foundation, structural, roof and water intrusion problems
- Unpermitted additions or work
- Pending construction next door or planned development
- Neighborhood or HOA disputes, and lawsuits affecting the property
- Past flooding, fire or soil movement
The duty comes from case law (Lingsch v. Savage (1963) 213 Cal.App.2d 729) and from statute. Most sales of one to four residential units require a Transfer Disclosure Statement (Civ. Code § 1102 and following). An “as is” clause does not excuse a seller from disclosing what the seller knows.
What you can recover
Depending on the facts, a buyer may recover the cost of repair or the loss in value, other out-of-pocket losses, and in cases of intentional concealment, punitive damages. In some cases the sale can be undone. In one of our cases, the seller took back the home.
Nevada
Nevada sellers must complete a Seller’s Real Property Disclosure Form under NRS Chapter 113. A seller who fails to disclose a known defect can be liable to the buyer under NRS 113.150.
Deadline
Fraud claims run from discovery
In California, a fraud-based nondisclosure claim generally must be filed within three years of discovering the facts (Code Civ. Proc. § 338(d)). Contract claims can have different periods. Many purchase contracts also require mediation before suit.
Nondisclosure results
Real estate nondisclosure · Settlement
Seller took back the home
Settled before trial after we defeated multiple summary judgment motions
Home purchase
Real estate nondisclosure · Settlement
Favorable settlement
Seller did not disclose imminent construction next to the home
Homeowner nondisclosure claim
Prior results do not guarantee a similar outcome.
Common questions
Don’t see yours? Call (323) 410-0300.
Can I sue the seller for not disclosing a problem?
Often, yes, if the seller knew about a material problem and did not disclose it, and you could not reasonably have found it yourself.
The house was sold “as is.” Do I still have a claim?
Possibly. An “as is” sale does not let a seller conceal known defects in California.
What if my inspector missed the problem?
The seller may still be liable for what the seller knew and did not disclose. Depending on the facts, there may also be claims against the agents or the inspector.
How long do I have to sue?
It depends on the claim. Fraud claims generally run three years from discovery in California, and your purchase contract may require mediation first. Get advice early.
Can I undo the sale?
Sometimes. Rescission is possible in some cases. More often the remedy is damages for repair costs or lost value.
I’m a seller being sued for nondisclosure. Can you help?
Yes. We also defend sellers and agents in nondisclosure claims. See our page on disputes involving agents and brokers, or call us.
Related
Guide
What sellers must disclose and how long you have.
The information on this page is general and is not legal advice. Contacting the firm does not create an attorney-client relationship. Prior results do not guarantee a similar outcome.