Tuesday, April 1, 2008

Non-Disclosure Issues- Potential Litigation

This Old House by Jim W Hildreth April 1 2008

The Old House sits at the top of the hill, affording good views of the Mother Lode Community of Sonora, CA a Gold Rush City.

The home is for sale and access to the home is parking on the city street and climbing rows of stairs.

A potential buyer made an appointment to preview the home with a Buyers Broker.

The first words from the buyer was "the
retaining wall that supports the parcel of land is slipping"

Upon further inspection the wall extended 8" from its original support and is sloping towards the city street.

With potential heavy rains, the potential for a wall collapse is evident.

The buyers Broker asked the listing Broker of any disclosures and the response was the agent had never noticed the buckled wall.

California civil code 2079 make it very clear that on one to four residential property include a
visual inspection to observe conditions which might affect the market value of the property and then entering those observation on Property (Transfer) Disclosure Statement.

The Buyers Broker would have the same obligations.

If the agents missed these disclosures, a future disaster for liability exposure would go beyond the potential collapsed retaining wall.

It is the wise agent, who will make a visual inspection and disclose.

Jim W Hildreth-Mediator
(209) 536-1103

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