Legal Question in Real Estate Law in California

The builder/seller misrepresented the whole tax / mellos during closing.

I bought a new home about a year ago from standard pacific. ( There are 10 others too- all looking for help)

Standard Pacific was the builder/seller of these new homes. During closing they disclosed, in black and white, our taxes with melloroos would be about 1.6% or about $6800/ yr.

At the end of 2008 I and the other 10 home owners got our full tax bill and it was 2% ( or higher) and almost $9000/ yr. That is a substancial miss. I believe they lied to us to make the sale.

Their response is it was only an estimate, and nothing can be done. AND if you don't like it, take us to court.

For me, thats $2200/ yr more or a 30%+ miss. ( x 30yrs ) Do I and the other 10 families have a case of fraud against them?

Thanks.


Asked on 4/08/09, 6:52 pm

1 Answer from Attorneys

Terry A. Nelson Nelson & Lawless

Re: The builder/seller misrepresented the whole tax / mellos during closing.

The only way you're going to get any semblance of useful answer is after a review of the all the contract terms. I suspect that the paperwork says "estimated" as to these taxes, with various 'legalese' indicating you agreed by signing that they had no liability for errors or omissions. They've already told you that, but you don't like their answer. If that is the case, your anger and dismay isn't grounds for bringing legal action that will take a lot of time and money to fight what looks currently like a losing battle with the builder's attorneys. It is worth spending the consultation fee for an answer, but listen to the advice given, without emotional attachment to your position. You'd have a long way to go to prove breach of contract [substantial mistake], let alone 'fraud' which would require proof they knew the truth and lied. Feel free to contact me if serious about getting that review. If you actually have sufficient grounds for lawsuit, then we can talk about the risks vs rewards

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Answered on 4/08/09, 7:16 pm


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