What are the duties of a seller and buyer in a failure to disclose matter in San Diego? Why is the failure to disclose such an important legal issue? The seller (and in some cases their agents) can be held financially and legally liable for the failure to disclose important defects or known issues with the property they are offering in San Diego. In many cases the failure to disclose major previous issues such as a foundation crack, termite or insect infestation, roof leaks, or other previously repaired issues will open the seller up to serious contingent liabilities. The seller must disclose known easements, environmental hazards and issues as well as existing zoning violations prior to consummation of the transaction.
How are the duties of a seller and buyer in a failure to disclose matter affected by the TDS? Conditional property issues should be provided by the seller to the buyer in a document known as the “Transfer Disclosure Statement” or “TDS.” The seller is required by law to provide the TDS as soon as possible before the closing of escrow. This is usually done as part of the buyer’s due diligence which should include home inspections and disposition of a home warranty prior to entering into an agreement to purchase the property. Once the TDS is provided by the seller, the buyer has 3 days to rescind or cancel the contract if the TDS was provided in person, and 5 days if it was delivered through the mail. The TDS should include everything from repairs to known issues regarding mold or other environmental issues, noise or odors in the neighborhood or if there has been a death in the property in the past 3 years.
The buyer has responsibilities as well. The buyer is required to perform due diligence and to conduct a thorough inspection. The safest thing for a buyer to do is hire a certified home inspector. The buyer cannot have a dispute with or sue the seller for a defect they should have found during a reasonable inspection, or that was disclosed prior to closing of the transaction.
The duties of a seller and buyer in a failure to disclose matter are quite complex. The experienced real estate attorneys at the Watkins Firm have decades of legal skill and experience in these matters and we invite you to review the strong recommendations of our clients and contact the Watkins Firm or call 858-535-1511 for a complimentary consultation today.
