Legal Question in Real Estate Law in California

If the previous owner knew about it and failed to disclose it in the real estate disclosures, the new owner has four years from when the new owner discovers the leak to sue for repairs. If the previous owner did not know, or knew and disclosed it, the previous owner has no responsibility after close of escrow.

Although the statute of limitations is four years for breach of a written contract and for matters not otherwise covered by a more specific law, I think this would come under Code of Civil Procedure section 338(d), actions based on fraud or mistake -- in which case suit must be commenced within three years of the aggieved party's discovery of the facts constituting the fraud or mistake.