Real Estate Agent listed lied about upgrades and failed to disclose many items in listing. Case for Errors and Omissions?

We recently purchased a home and were specifically told that the house was fully upgraded to copper plumbing and and an upgraded electrical panel. This is written in the listing and contract. These items have not only turned out to be false, but within the 6-month period of ownership need to be replaced and it will cost close to $10,000 for both items. These are not covered by homeowner's insurance as the installation was illegal and faulty. Is this a court case for the sellers or for the agent who misrepresented the property? Thank you in advance for all advice.

Encino, CA -

Attorney Answers (4)

Scott Gregory Nathan

Scott Gregory Nathan

Business Attorney - Santa Ana, CA
Answered

This looks like it probably is a case against the sellers and, if you are able to establish the agent knew or should have know about the false disclosure, a case against the agent. You really should consult with an experienced R.E. lawyer as this is an area of the law where a do-it-yourself approach should not be attempted. There are many great R.E. lawyers here on Avvo and most of them should give you a free consultation. Good Luck.

*Scott G. Nathan has been licensed to practice law in California since 1983. The information presented here is... more
Sagar P. Parikh

Sagar P. Parikh

Contracts / Agreements Lawyer - Beverly Hills, CA
Answered

Yes, this may be a failure to disclose, but a full review of all the documents involved in the purchase would have to be reviewed to properly advise you. Additionally, even if you have a case, you will probably have to go to arbitration or mediation, rather than filing suit.

I am a real estate broker as well as an attorney.

Dana Leigh Ozols

Dana Leigh Ozols

Business Attorney - Yorba Linda, CA
Answered

I agree with my colleagues that you have a cause of action against the seller. I also handled a matter a few years back very similar and since the sellers had no money, we also pursued the agent. My clients recovered more than $80,000 from the real estate company (and their carrier did indeed pay). There is a theory in the law that the broker/agent is not required to make disclosures about the existence of things on real property, but when they open their mouth, they must only speak truthfully. Best of luck!

Dana Howard Shultz

Dana Howard Shultz

Business Attorney - Oakland, CA
Answered

I agree with my colleagues. You should retain a real estate lawyer to advise you.

There is, however, one point that puzzles me: Did you not have the house inspected before the purchase and sale closed?

This information does not constitute legal advice and does not establish an attorney-client relationship.

Related Topics

Buying and selling property

There are certain steps to follow to buy and sell real estate, from listing the property or making an offer, to meeting contingencies, among other things.

Featured Legal Guides

Buyer's rights in property sales

Property buyers are granted certain buyer's rights, which include things like getting accurate information about the property and choosing your own lender.

Featured Legal Guides

Questions? An attorney can help.

Ask a Question
Free & anonymous.
Find a Lawyer
Free. No commitment.