Selling and buying real estate in California can be rife with challenges. Some potential issues are not at the forefront during the process, but pre-existing and undisclosed problems can have a negative impact. Understanding real estate law in this context is imperative.
Failure to disclose is a part of real estate law
With failure to disclose, legal disputes inevitably occur. Although this law might seem obvious, interpretations can vary. Sellers are wise to be upfront with prospective buyers. If they are not, it may spark disagreement as to the purchase price or the buyer even having bought the property at all. For example, if there is planned construction next door and it affects the initial attraction to the property, this could be considered a failure to disclose.
Necessary repairs could hinder the agreement
If there is a major part of the structure that needs repair, it could be extremely expensive. One example is if there is a sewer line blockage that continually needs to be addressed. Purchasers who were unaware of it may need to fix it themselves, something they neither anticipated nor wanted. When the former owner knew of the issue, failed to fix it or chose not to disclose it, it might lead to a lawsuit.
The largest problems that arise are structural and encroachments. When there is a pre-purchase inspection, these factors could be missed as it is difficult to gauge them with a single analysis. Some sellers try to cover up the damage. This tends to make matters worse once they are discovered and the purchaser lodges a complaint.
Legal advice could be essential to address failure to disclose
Buyers and sellers are advised to conduct a thorough inspection of the property and to have professionals give them independent assurances every step of the way. Still, there are times when the sale has been completed and discoveries are made after the fact. From the start, it is wise to have advice and guidance from those experienced in real estate law. Calling for a consultation may be beneficial.