Why is the failure to disclose a known issue in a San Diego real estate transaction a substantial legal and financial issue?

Recent years have brought a rise in “Failure to Disclose” cases based upon San Diego real estate transactions.  In California, the seller is required to disclose all known material property defects such as (but not limited to) cracks in the foundation, structural damage, roof issues, leaks, mold, insect infestation or electrical problems.  The failure to disclose these issues opens the seller up to a lawsuit for damages or more specific relief.

The failure to disclose a known issue in a San Diego real estate transaction can be a tough case to prove.  This is why it is important to retain the San Diego real estate attorneys at the Watkins Firm.  We have decades of experience and substantial legal resources and skill in these matters.

The buyer must exercise appropriate due diligence prior to the purchase.  This is an important ingredient of a real estate transaction.  Due diligence not only helps to raise potential risks and issues prior to the transaction.  Due diligence also protects the rights of a buyer after the completion of the transaction.

A simple way to accomplish due diligence is to hire a home inspection or commercial property inspection service.  The buyer cannot file a lawsuit for damages related to defects that should have been readily visible or identifiable during the due diligence phase of the transaction.

Many defects simply are not identified, even though the buyer exercised all efforts required by law.  In these cases the buyer should retain the proven San Diego real estate dispute attorneys of the Watkins Firm who bring more than 40 years of experience to your side of the transaction.  We will work to protect your interests, recover appropriate damages to cover the cost of repairing the nature of the hidden defect and for the failure to disclose the defect during the transaction.

Pro-Tip: “In residential real estate, there’s something called a transfer disclosure statement.  And that talks about what the actual legal requirement is for disclosure. And this form has grown from one page to six pages. And you have to be honest on that. So when I get a real estate defect case today, I’ll go right to that document because somewhere in there, if the seller’s a bad person, they lied on the TDS. And that’s where you have a problem because it’s hard to sell a house with a big defect and you don’t want it, and you can’t afford the house anymore. So you get tempted to just kind of skimp on your disclosures, hide it and pass it on. 

And you just hope nobody finds it, or, they just let it go. So where’s that fine line between you knew about this versus, okay, maybe you really didn’t know about this, but we have a problem?

(Our client) may want to just reverse the transaction and turn everything over and take money damages. Here in California, you’re entitled to your benefit of the bargain. You’re entitled to restitution. You’re entitled to damages, interest costs, fees, escrow fees, everything you went through, you’d be entitled to that. If you can prove a breach when you sue somebody for breach of contract (real estate or not), that usually comes with about four or five other causes of action based on different statutes, different laws, different cases. California real estate law provides you full remedies. And then you get to pick the remedy you want based on what you choose as the plaintiff (with the advice of your Watkins Firm counsel) to make you whole again.” – Dan Watkins, Founding Partner

If you are concerned about a failure to disclose known issues in a San Diego real estate transaction or a hidden defect in a home or commercial property you recently purchased we invite you to review our podcast Episode 43 – Real Estate Disputes as well as the strong recommendations of our clients and contact the Watkins Firm or call 858-535-1511 for a complimentary consultation today.