Failure to Disclose Defects Attorney — California Real Estate
California requires most residential sellers to disclose known material defects on a Transfer Disclosure Statement under Civil Code section 1102 and following, and an as-is clause does not excuse concealing a known problem. DiJulio Law Group represents Los Angeles and Glendale buyers and sellers in nondisclosure claims involving water intrusion, foundation defects, and unpermitted work.
Can you sue a seller in California for failing to disclose a defect?
Yes. California requires residential sellers to complete a Transfer Disclosure Statement identifying known material defects. A buyer who discovers a defect the seller knew about and concealed may sue for fraudulent concealment, intentional or negligent misrepresentation, and statutory nondisclosure. Recoverable damages typically include repair cost or diminution in value, and punitive damages are available for intentional fraud.
Nondisclosure Claims and Defenses in California Sales
California's residential disclosure scheme is unusually broad. A seller must disclose known material facts affecting value or desirability — not only physical defects, but also things like prior litigation over the property, neighbor disputes, unpermitted construction, prior water intrusion, and prior remediation. Listing agents and buyer's agents carry their own duty to conduct a reasonably competent visual inspection of accessible areas and disclose what it reveals.
The defenses are equally well established. The seller must have actually known; a buyer who was told and proceeded anyway generally cannot complain; obvious conditions a reasonable inspection would have caught are treated differently from concealed ones; and limitations periods run from discovery, which cuts both ways. Most cases are won or lost on documentary evidence — prior repair invoices, insurance claims, permit history, and earlier listing photographs.
The claim frequently overlaps with adjacent theories. Undisclosed water intrusion becomes a mold claim. Undisclosed defective workmanship becomes a construction defect claim against a builder still within the statute of repose. Undisclosed boundary or access problems become title disputes. Our analysis of California mold disclosure law walks through how these theories combine.
Proving a Seller Knew: Los Angeles Permit and Code Enforcement Records
In Los Angeles County nondisclosure cases, public permit and code enforcement records are often the strongest evidence of what a seller knew. A permit pulled for a repair, a failed inspection, or a code enforcement case opened against the property can show the seller was aware of a condition left off the Transfer Disclosure Statement.
Which office holds the records depends on where the property sits. The City of Los Angeles Department of Building and Safety keeps permit and inspection histories for City parcels, Los Angeles County Public Works handles building permits in unincorporated areas, and the City of Glendale keeps its own building permit and code enforcement files. Much of the housing in Glendale and the older Los Angeles neighborhoods was built long before current codes, so decades of additions, garage conversions, and repairs are common. The gap between the permit file and what was actually built is often where a claim begins, and our Los Angeles real estate attorneys start there.
Does an As-Is Sale Waive the Seller's Disclosure Duty in California?
No. Most sellers of California residential property must deliver a Transfer Disclosure Statement under Civil Code section 1102 et seq., and section 1102 declares any waiver of those requirements void as against public policy. Section 1102.1 states the Legislature's intent that delivery of the statement may not be waived in an as-is sale.
An as-is clause generally allocates the risk of conditions the buyer could discover; it does not excuse concealment of a known material defect. Civil Code section 1668 treats contracts that exempt a party from responsibility for its own fraud as against the policy of the law, and Civil Code section 1102.1 (opens in a new tab) cites Loughrin v. Superior Court (1993) 15 Cal.App.4th 1188 on as-is sales. Some transfers, including foreclosure and certain court-ordered sales, are exempt from the statement under section 1102.2, but section 1102.1 also confirms the article does not displace the existing duty to disclose facts materially affecting value and desirability.
How Long Do You Have to Sue a Seller for Nondisclosure?
For fraud and concealment claims, Code of Civil Procedure section 338(d) sets a three-year limitations period that does not begin until the buyer discovers the facts constituting the fraud. Courts generally measure discovery from when a reasonable buyer would have suspected wrongdoing, so waiting after the first signs of a problem is risky.
Other theories, such as negligent misrepresentation or breach of contract, may carry different periods, and most purchase agreements require mediation before filing. The text of Code of Civil Procedure section 338 (opens in a new tab) controls. Document the defect before repairs begin, and see how mold and water intrusion fit this framework in our guide to California mold disclosure law.
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Glendale, California 91203
Los Angeles County Superior Court, including the Glendale and Stanley Mosk courthouses.
Property disputes, purchase and sale litigation, leases, disclosure claims, and land use across Los Angeles County.
Disclosure Matters We Handle
For buyers pursuing claims and for sellers, agents, and brokers defending them across Los Angeles County.
Water Intrusion & Drainage
Undisclosed prior flooding, roof and window leaks, slope drainage failures, and repairs performed without permits or documentation before listing.
Structural & Foundation Defects
Concealed settlement, cracked slabs, hillside movement, retrofit deficiencies, and prior engineering reports the seller did not produce.
Unpermitted Construction
Additions, conversions, decks, and ADUs built without permits — a defect that surfaces at resale, refinance, or when code enforcement arrives.
Agent & Broker Liability
Claims arising from the agent's independent duty of visual inspection and disclosure, and defense of agents and brokers against those claims.
"As-Is" and Waiver Defenses
Testing whether an as-is clause, an inspection contingency waiver, or a released contingency defeats the claim — usually it does not, where concealment is proved.
Seller & Estate Defense
Defending sellers, trustees, and estates against post-closing claims, including exemption arguments for probate and trust transfers.
Disclosure Disputes That Reach Our Office
Composite examples drawn from the kinds of matters this practice handles. They illustrate common fact patterns and are not descriptions of specific client cases or predictions of any result.
The First Heavy Rain
A buyer closes in August. In January, water enters at three windows and the ceiling stains. Prior owner insurance claims and a contractor invoice predating the sale show the condition was known and cosmetically covered before listing.
The Permit That Never Existed
A Glendale buyer applies to remodel and learns the rear bedroom and bath were built without permits decades ago. The city requires legalization or removal. The seller's TDS said nothing, though the seller had previously been cited.
The Seller's Defense
A seller is sued over a slab crack disclosed in general terms and visible in the buyer's own inspection report. The defense is built on what the buyer actually knew, what the inspection disclosed, and what the seller genuinely knew.
When a Disclosure Problem Needs a Lawyer
- You discovered a significant defect shortly after closing that was not disclosed.
- Repair invoices, permits, or insurance records show the seller knew about the condition.
- The purchase agreement contains an as-is clause and you were told it bars any claim.
- You are a seller or agent who has received a demand letter or a mediation request.
- The defect involves water intrusion, mold, structural movement, or unpermitted work.
- The purchase contract requires mediation before a lawsuit may be filed.
What to Do First
Document before you repair
Photograph and video the condition, and obtain written estimates, before any remediation. Repairing first destroys the evidence your claim depends on.
Pull the history
Prior listings and photographs, building permit records, insurance claim history, and any prior inspection reports frequently establish the seller's knowledge.
Read the dispute clause
Most California residential purchase agreements require mediation before filing, and failing to comply can forfeit attorney fee recovery. Check the clause before sending a demand.
Related Case Studies
Court decisions and legal developments DiJulio Law Group has analyzed that bear on failure to disclose defects matters. Each summary explains the law; none describes a firm client or result.
Failure to Disclose Defects — Questions California Clients Ask
What California buyers, sellers, and agents ask after an undisclosed defect surfaces.
What must a seller disclose under California real estate law?
California law requires sellers of residential real property to provide a Transfer Disclosure Statement (TDS) disclosing known material defects affecting the property. Sellers must disclose issues that would significantly affect the property's value or the buyer's decision to purchase — including structural problems, water damage, prior repairs, pest issues, and known legal disputes affecting the property.
What are common examples of nondisclosure claims?
Common claims include failure to disclose prior flooding or water intrusion, roof defects, foundation problems, mold, unpermitted construction, neighborhood noise issues, deaths on the property, and known disputes with neighbors or homeowner associations.
Can a buyer sue a seller after close of escrow for a defect?
Yes. Buyers who discover material defects that the seller knew about but failed to disclose may bring claims for fraudulent concealment, negligent misrepresentation, or violation of California's disclosure statutes. The buyer must generally demonstrate that the seller knew about the defect and that the buyer would not have purchased — or would have paid less — had they known.
How long do I have to sue a seller for nondisclosure?
For fraud and concealment claims, Code of Civil Procedure section 338(d) allows three years, and the period does not begin until the buyer discovers the facts constituting the fraud. Courts generally measure discovery from when a reasonable buyer would have suspected wrongdoing. Other theories, such as negligent misrepresentation or breach of contract, may carry different periods, and most purchase agreements require mediation first, so act promptly after a defect appears.
Are real estate agents liable for nondisclosure?
Agents and brokers can be held liable for failing to disclose known material defects or for failing to conduct a reasonably diligent inspection of the property and disclose what a careful inspection would have revealed. Claims against agents often run alongside claims against the seller.
Does an as-is sale waive the seller's disclosure duty in California?
No. Civil Code section 1102 makes any waiver of the Transfer Disclosure Statement requirements void as against public policy, and section 1102.1 states that delivery of the statement may not be waived in an as-is sale. An as-is clause generally shifts the risk of conditions a buyer could discover, but it does not protect a seller who conceals a known material defect, and Civil Code section 1668 treats contracts exempting a party from its own fraud as against public policy.
What damages can a buyer recover for nondisclosure?
Depending on the severity of the defect and the legal theory, buyers may recover the cost to repair the defect, the diminution in property value caused by the undisclosed condition, consequential damages, and in cases of intentional fraud, potentially punitive damages.
Should I get a home inspection before buying a property?
A professional inspection is strongly advised. California law requires sellers to disclose known defects, but inspectors can identify issues that even the seller may not be aware of. Inspections also preserve a buyer's ability to negotiate repairs or credits, and help document conditions if a dispute arises later.
What does a failure to disclose property defects attorney actually do?
The work is largely evidentiary. Counsel establishes what the seller knew and when, using prior listings and photographs, permit history, insurance claim records, repair invoices, and earlier inspection reports; evaluates which theories the facts support; complies with any contractual mediation requirement; and quantifies damages through repair cost or diminution in value. On the defense side, the same records are used to show the condition was disclosed, obvious, or genuinely unknown.
Do I have to mediate before suing the seller in California?
Usually yes. The standard California residential purchase agreement makes mediation a condition to recovering attorney fees, and a party who refuses a properly made mediation request may lose fee recovery even if they ultimately prevail. Check the dispute resolution clause in your specific agreement before sending a demand letter or filing suit.
Local Representation
Disclosure claims on Los Angeles County property are filed in the county courts and usually preceded by contractual mediation.
Talk to a Real Estate Attorney
Nondisclosure claims run on a discovery-based clock and depend on evidence that disappears when repairs begin. Bring the disclosures and inspection reports before you fix anything.