Real Estate Disclosure Disputes
Disclosure Disputes in Real Estate: Ensuring Accountability and Protecting Your Rights
Disclosure disputes are among the most contentious and complex areas of real estate law. In California, sellers, real estate agents, and brokers have a legal obligation to disclose material facts about a property that could affect its value or desirability. When these obligations are not met, buyers can face significant financial losses, safety hazards, or unanticipated repair costs. At Bay Legal, PC, we are committed to holding sellers, agents, and brokers accountable for violations of California’s strict disclosure laws. Our team of experienced attorneys provides strategic representation to ensure that clients receive the full legal protections they deserve.
Understanding California’s Disclosure Laws
California real estate transactions are governed by some of the nation’s most stringent disclosure requirements. These laws aim to protect buyers by ensuring transparency during the sale or transfer of property. Key legal provisions include:
California Civil Code Section 1102
Requires sellers to provide a Transfer Disclosure Statement (TDS). This form mandates the disclosure of all known material defects and issues that could affect the property’s value or desirability, such as roof leaks, plumbing problems, or environmental hazards.
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California Civil Code Section 2079
Obligates real estate agents and brokers to conduct a reasonably diligent visual inspection of the property and disclose any observable defects to prospective buyers.
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California Health and Safety Code Section 25359.7
Requires disclosure of known environmental hazards, such as lead-based paint, asbestos, or contamination from hazardous substances.
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California Civil Code Section 1102.6
Covers additional disclosures related to specific natural hazards, including flood zones, seismic zones, and wildfire zones.
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Failure to comply with these laws can lead to legal claims for damages, rescission of the sale, or other remedies.
Common Types of Disclosure Disputes
Failure to Disclose Material Defects
Sellers must disclose all known issues that materially affect the property’s value or habitability. Examples include structural damage, water intrusion, mold, pest infestations, or electrical hazards. Failure to disclose these issues can expose sellers to significant liability.
Fraudulent Misrepresentation
Occurs when a seller, agent, or broker knowingly conceals or falsifies information about the property. For instance, painting over water damage to hide leaks or lying about the age of a roof can lead to legal action.
Negligent Misrepresentation
Arises when a party fails to exercise reasonable care in verifying property information. Real estate professionals can be held liable for failing to conduct a proper visual inspection or for providing inaccurate information.
Non-Disclosure of Environmental Hazards
California law requires sellers to disclose known hazards such as proximity to hazardous waste sites, radon gas, or seismic activity risks. Failure to inform buyers of these dangers may result in both civil and regulatory penalties.
Breach of Fiduciary Duty by Agents and Brokers
Real estate professionals have a fiduciary duty to act in the best interest of their clients. Failing to disclose known defects or prioritizing commission over transparency can lead to claims for damages.
Legal Remedies for Disclosure Violations
Rescission of the Sale
Buyers may have the right to rescind the sale agreement if material defects or fraudulent misrepresentation are discovered after the transaction.
Damages
Buyers can seek compensation for financial losses, including the cost of repairs, diminished property value, or relocation expenses.
Specific Performance
In cases where damages are insufficient, courts may order specific performance to rectify the harm caused by the disclosure violation.
Punitive Damages
In cases of intentional fraud or egregious misconduct, buyers may be awarded punitive damages to deter similar behavior in the future.
Why Choose Bay Legal, PC?
At Bay Legal, PC, our attorneys bring decades of experience to resolving disclosure disputes. We work tirelessly to uncover hidden defects, fraudulent misrepresentation, or breaches of fiduciary duty. Our team employs a strategic approach, which may include:
- Conducting thorough property inspections and reviews of all disclosure documents
- Consulting with engineers, contractors, or environmental experts to assess undisclosed defects
- Pursuing litigation or alternative dispute resolution to recover damages or rescind transactions
- Holding real estate agents and brokers accountable under California Civil Code Section 2079 for failing to meet their disclosure obligations
How We Can Help
If you’ve purchased a property in California and later discovered undisclosed defects, Bay Legal, PC can help you take action. Whether it’s recovering compensation, rescinding the sale, or holding responsible parties accountable, we are here to protect your rights.
Contact us today for a consultation and let us help you navigate the complexities of disclosure disputes under California law. Protecting your investment and securing your future is our priority.
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