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legalgems, Arbitrator
Category: Real Estate Law
Satisfied Customers: 9913
Experience:  Just Answer consultant at Self employed
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I just bought a home in ca, home was listed as: New plumbing

Customer Question

I just bought a home in Manteca ca, home was listed as:
New plumbing 4yrs old
New electrical 4yrs old
My question is since i moved in on April of 2016, I had to replace the sewer ($1500.00) line from the house to the street (owner was aware of the probem according to local Plumber).
Also had a major water leak underneath guest restroom bath tub. Had it repaired along with the water main shut off valve to the house ( not city main), the cause for the main was it was not shutting off the water.
I used FHA, but I was not allowed to have them (FHA) perform the inspection, I felt rushed on this sale, and being a first time home byer I feel I was taken advantage of.
I strongly believe the inspector was paid off on this deal. Inspector never went up in the attic. Had some electrical done was was told the kitchen fan had electrical wires exposed.
Please consider this on a serious note, I feel like I was frauded on this home.
Al Aguayo
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  legalgems replied 1 year ago.

I am sorry to hear this; CA has very strict seller disclosure laws for real estate transactions; basically the seller must disclose all defects that the seller knew of; in fact, the real estate agent must disclose any issues that a reasonable due diligent walk through would expose.

Misrepresentation is when a party does the following: (1) a representation was made; (2) that was false; (3) that when made, the representation was known to be false or made recklessly without knowledge of its truth; (4) that it was made with the intention that the plaintiff rely on it; (5) that the plaintiff did rely on it; and (6) that the plaintiff suffered damages as a result.

Fraud in the inducement is similar, basically misrepresentation designed to entice the buyer to enter the contract. It requires: The defendant made an intentional action, statement, or omission; The misrepresentation was material to the decision to enter into a contrac; The plaintiff reasonably relied on such misrepresentation, and The plaintiff suffered some degree of injury, usually economic harm.

So statements from professionals that have worked on the home before can help prove that the seller knew of the pre-existing defect.

Here is the sample disclosure form that is required by law:

You will see it is very detailed.

As for the inspector- that is more difficult to prove- one would need to prove bribery or other conflict of interest; however, for the seller, all that needs to be proven is that the seller did in fact know of the issues and failed to disclose them- then the buyer can sue for the damages (ie cost of repair).

If the amount is less than $10,000 small claims is appropriate:

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Information provided is for educational purposes only. Consultation with a personal attorney is always recommended so your particular facts may be considered. Thank you and take care.