If you choose to invest in Long Beach real estate, it’s important to have all the facts about the home or building that you are looking to purchase. The last thing you want is to find out about a structural defect months or even years after you’ve made a significant purchase and turned that property into your home or business. It’s important for real estate agents to disclose defects, and a failure to disclose structural issues in Long Beach real estate can result in legal complications.
Throughout this, it may benefit you to seek legal assistance from a Long Beach real estate attorney. A good real estate lawyer can make sure that you aren’t being taken advantage of and can put together a comprehensive real estate case if you are. Your lawyer can help you better understand how California’s real estate laws may apply to your situation and give you a list of everything that must be disclosed when purchasing real estate in Long Beach.
What Sellers Must Legally Reveal?
If you decide to pursue a real estate case in Long Beach, your case may be decided in the Los Angeles County Superior Court. Specifically, your case may take place in the Governor George Deukmejian Courthouse on Ocean Boulevard. This courthouse is generally where most civil claims, including real estate cases, are decided. The average price of a mid-tier home in California is $755,000, which means a lot of money is potentially at stake here.
When you are looking to buy a home in Long Beach, sellers are legally required to disclose all known material facts that can affect a property’s inherent value or desirability, as per the state’s Transfer Disclosure Statement (TDS). Any failure to disclose structural problems, defects, or unpermitted work can result in legal claims of fraud, breach of contract, or even negligence. Here are some of the most important things that a seller must reveal to potential buyers:
- Foundational damage. If a home’s foundation is damaged in any way, the resulting chaos to the home itself can be disastrous. Duplicitous homeowners may be trying to sell the property quickly before anyone discovers foundational damage, which is blatant fraud. Signs of foundational damage can include cracks, settling, or shifting on expansive soil. Expansive soil causes roughly $3.7 billion in economic losses a year in California.
- Water damage. Water intrusion can wreak havoc on a home in California. There are many natural disasters that plague the state, including floods and landslides. Such disasters can easily cause significant water damage or structural damage that leads to water intrusion. Either way, this is something potential buyers need to know. If a seller fails to disclose water damage, that can lead to legal action.
- Unpermitted construction. If you want to add on to your home or do a remodel, you need to make sure you have the right city permits. Any unpermitted construction work on the home can lead to complicated legal trouble that no potential buyer wants to be involved in. Sellers must disclose any unpermitted construction or remodel.
- Pest damage. There are few things more infuriating than finding out that the home you just bought has a pest infestation that nobody disclosed. Termites, rodents, and other vermin can cause significant damage to a home, and if a seller fails to disclose such damage, you should consider hiring a real estate lawyer to pursue damages against them.
- Environmental hazards. There are many different hazards that may be completely out of the seller’s control, but they still need to disclose them through the proper channels so buyers are aware. Certain environmental factors, like the presence of asbestos or toxic mold, can lead to medical problems, among other complications.
FAQs
What Is Negligent Failure to Disclose in California?
Negligent failure to disclose occurs when a seller or real estate agent fails to uncover or disclose material information regarding a property’s value or disability. At the same time, not the same as fraud, which requires intent to deceive, a negligent failure to disclose constitutes a breach of duty. Agents and sellers must disclose structural damage, environmental hazards, pest damage, and any other factors that affect a home’s resale value.
What Is an Example of Failure to Disclose?
There are many different examples of a seller or agent failing to disclose damage to a home. One example would be failing to report a crack in a home’s foundation. Cracks can form throughout a home, even in the walls. A crack can mean that the home’s foundation is shifting, and the structural integrity of the property may be in question. If a seller fails to disclose that to a buyer, it can lead to understandable legal action.
What Obligation Do Realtors Have to Discover Latent Defects in a Property?
In California, realtors have a legal obligation to disclose any defects that they discover through a reasonably competent and diligent inspection of the property. They are not, however, obligated to discover latent defects that are not immediately visible during a walkthrough. After all, if the realtor didn’t know about it, they can’t be expected to disclose it to a buyer. They do have to investigate red flags and disclose any observable issues.
What Are the Consequences of Not Disclosing Information?
In California, failing to disclose any material defects during a real estate transaction can lead to serious legal consequences, including accusations and/or charges of fraud, breach of contract, and negligent misrepresentation. The seller may rescind the sale and pursue a legal claim for compensation or even punitive damages for the waste of time. If you are a seller in this situation, you should contact a real estate lawyer to help you figure out your options.
Be Sure to Hire a Real Estate Lawyer
The last thing you want when buying real estate in Long Beach is to find out there are structural problems that were never disclosed to you. If that happens, you should hire a real estate lawyer to help you build a strong case and seek damages. At Kristy & Kananen, we have decades of experience helping consumers avoid being taken advantage of in a variety of situations. Contact us to speak to a valued team member about your case.
