Nondisclosure Disputes | Real Estate Attorneys in Roseville, CA

California’s Seller Disclosure Obligations

California law imposes broad disclosure duties on sellers of residential real estate. A seller must provide a buyer with a Real Estate Transfer Disclosure Statement (TDS), a document that comprehensively describes the structural condition of the property and identifies any known material defects or issues that would affect the property’s value or desirability. Sellers and their listing agents also have an independent duty to disclose any known material facts, even those not specifically captured on the TDS form.

What Is a Material Defect?

Material defects are conditions that would affect a reasonable buyer’s decision to purchase the property or the price they would be willing to pay. Common examples include:

• Foundation problems, settling, or structural damage

• Water intrusion, moisture damage, or mold

• Roof leaks or deterioration

• Electrical, plumbing, or HVAC system deficiencies

• Unpermitted additions or improvements

• Environmental hazards such as asbestos, lead paint, or soil contamination

A patent defect is one that is visible or discoverable upon reasonable inspection. A latent defect is one that is hidden and not apparent from a normal inspection—these are the defects that most frequently give rise to litigation, as their discovery may occur months or years after closing.

Remedies Available to Buyers in Nondisclosure Cases

If a buyer discovers that a material defect was not disclosed, several legal remedies may be available depending on the circumstances:

• Compensatory damages: Recovery of the actual cost to repair the defect or the diminution in the property’s value caused by the undisclosed condition

• Rescission: In appropriate cases, the entire transaction may be unwound, requiring the seller to return the purchase price and reclaim the property

• Punitive damages: If the seller knowingly concealed a material defect with malice or fraud, punitive damages may be awarded as a deterrent

Agent and Broker Liability

California imposes disclosure duties not only on sellers but also on listing agents and brokers, who are required to conduct a reasonably diligent visual inspection of the property and disclose any known or discoverable material defects. As a result, real estate agents and brokers are frequently named as defendants alongside sellers in nondisclosure litigation.

Act Promptly—Statutes of Limitations Apply

California’s statutes of limitations impose strict deadlines on real estate nondisclosure claims. If you believe a material defect was concealed or not disclosed, contacting an attorney promptly is essential to preserving your rights.