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Fraud in Real Estate Sale

Asked about 3 years ago - San Jose, CA

How sure we win this case? We purchased a duplex with full advertisement: First house-2 bedrooms/1 bath; 2nd house 1bedroom/1bath. After a year of our stay, the city found out that First house has 1 bedroom and the 2nd house is a garage. The city ordered us to demolish the bedroom in the 1st house and to vacate the 2nd house and declare it non-tenable which we complied with. Can we claim damages from the seller/agent? Is there a lawyer who will enter into agreement in which fees will be due upon receipt of such claims? Plese help.

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Attorney answers (3)

Elena Rivkin Franz

Reputation Level 9

Answered about 3 years ago. Business Attorney in Santa Clara, CA.

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Something very important for your recovery is the date that you purchased this property. Generally, there is a two year statute of limitations against the real estate broker in this deal. You mention the city has required you to demolish a portion of the property a year after you moved in, but you don't indicate how long ago that was.

If you are looking for an attorney to take this case on a contingency basis as you indicate your question, the time line is important for determining whether a recovery will be available from the real estate broker's insurer.

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Michael Robert Bracamontes

Reputation Level 11

Answered about 3 years ago. Personal Injury Lawyer in San Francisco, CA.

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Both the seller and the brokers could be liable to you for damages if they knowingly misrepresented the property at the time of sale. The merits of your case would certainly be affected by what disclosures, if any, were made in the contract of sale. How the property was advertised would also be important. Feel free to contact me for a review of the documents.

Disclaimer: You should discuss your situation with a local attorney, as the above statement is a general overview and does not take into account all of the factual considerations in your case. Nothing in this statement creates an attorney-client relationship.

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Gregory Paul Dolinajec

Reputation Level 6

Answered about 3 years ago. Real Estate Attorney in Portland, OR.

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First, you will have to review your contract to purchse the property. Look to determine if the property was sold "as is" or if any disclosures were made concerning additions done without permits or in violation of zoning laws. Typically, residentail real etate transactions involve a property disclosure statement on which the seller must disclose any known defects in the property. Check your files to determine if you have a disclosure statement of some sort. If you have proof that the seller did not disclose but knew that additions were made which were done without permits or were in violation of the zoning, you probably have good case. If the seller has asseets you should be able to find an attorney to take the case on a contingent fee basis. The brokers involved would be liable if they knew or reasonably should have known about the situation. It's typically more difficult to establish liability for the brokers without compelling eveidence that the brokers were aware of the defects.

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