September 2017 - DLG Law Group

failure to disclose defects According to the National Association of Realtors, up to 77% of home buyers will have an inspection of the house done before they agree to sign any documents and purchase the home. Home inspections are essential to ensuring you’re getting what you paid for and for avoiding nasty surprises in the future.

Fortunately, in the state of California, real estate law requires all residential real estate agents to disclose any defects or issues with the property before selling it to buyer. Failure to disclose defects of the property may result in criminal charges of misrepresentation, fraud, and/or deceit.

What laws protect me from an agent’s failure to disclose defects?
Laws pertaining to a failure to disclose defects regarding a property are the Common Law and the Statutory Law of California.

According to the Common Law of California, or Lingsch v. Savage 1963, the property seller and agent must inform the property buyer of all features or instances that may have impacted the value of the property.

These instances include deaths on the property, water damage, or pest infestations. Should the seller or agent fail to disclose this information before the signing of real estate contracts or in the contracts, they may then be held potentially liable for any damages.

Under the California Civil Code section 1102 in the Statutory Law of California, the seller of the property is required to procure a Transfer Disclosure Statement to the buyer in any document or real estate contract involving real property. The statement should include in-depth information about the property including natural hazard exposure, industrial use issues, dangerous conditions, physical burdens, etc.

Because of the extensive list of disclosures it may be in your best interest to have a real estate lawyer look over the document so there are no surprises later on.

Under what circumstances can I not hold the seller liable?
The seller of the property can’t be held liable for failure to disclose defects if the seller was not personally aware of the defects. However, there must be proof of an inspection having been performed in order to claim ignorance. If a reasonable inspection doesn’t reveal any property damage or issues and the property seller is unaware of the defects, they can’t be held liable in the future.

Additionally, it’s the property buyer’s responsibility to have the property inspected before purchasing. Under Loughrin v. Superior Court 1993, a seller can’t be held liable for failing to disclose defects of the property if the defects were easily visible or could be found during a regular inspection.

Only if the buyer has an inspection performed and the inspector is unable to locate anything wrong with the property and only if the seller is aware of the non-observable defects in the home can they be held liable.

Before signing a real estate contract with any property seller, it’s a good idea to have a real estate law firm look over the documents. Having an inspection performed on the property and a real estate lawyer California trusts analyze the finer details of the property transaction will grant you a better chance of being swindled.

Getting through the foreclosure process can feel like a battle, especially when you’re working with your real estate attorney to get yourself out of foreclosure. However, once you’ve made your way out of the foreclosure process, it can be even more difficult keeping yourself from being swept back into it.

Some homeowners are able to avoid foreclosure by reinstating their mortgage. This can be done by making a permanent loan modification. However, even with a loan modification, some homeowners may fall back into the trap of being unable to make mortgage payments, therefore sending them right back into foreclosure.

How you can avoid a repeat foreclosure
Called “repeat foreclosure” under real estate law, this problem has been an increasing blot on the eye of the housing market since the beginning of the housing crisis. In 2013 alone, there was a foreclosure in one out of every 96 American homes.

Falling into foreclosure once is enough for any homeowner to never want to do it again. Fortunately, there are ways you can reduce your risk of falling back into foreclosure.

1. Don’t continue to live in a home you can’t afford
  One of the main causes of foreclosure is that a family has purchased a home that isn’t in their budget. By staying in a costly home that has already driven you to foreclosure once, it may be in your best interest to find a home that suits your current financial needs. Consider a short sale, which will keep you involved in the process of your home’s sale and will give you some control.

Save money during the time your mortgage payments are halted
In order to avoid a wave of mortgage payments later, you may have difficulty affording, put aside the money you would be paying into your savings account or elsewhere. This will keep you from having to dig deep into your pockets to find the money later once the payments begin again. It also provides you with a safety net should something go wrong with your finances later on.

The foreclosure process is never something to look forward to even with the help of a real estate lawyer. This is especially true for those homeowners who have already been through it once. Consider following these tips in order to keep yourself from falling into a repeat foreclosure. For assistance and more information regarding your repeat foreclosure and what you can do, contact the law offices of DiJulio Law Group today.

(818) 502-1700

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