Legal Question in Real Estate Law in California

Misrepresentation of Realtor

My mother bought a condo about 3 years ago and found many interesting issues with the condo. We contact a broker to see what our options were. We find that the outlets are not wired correctly and such, but to our knowledge an inspector was present. But after speaking to broker, we had found out that the CC&R's were suppose to be given to us before escrow had closed. But the CC&R's were not given to us until after escrow closed. The transaction was fast and now after knowing about the CC&R's we feel that the realtor cheated us, because if we had recieved the CC&Rs ahead of time, then there would have been a possibility to cancel the transaction. What should we do?


Asked on 12/12/08, 12:36 am

2 Answers from Attorneys

David Gibbs The Gibbs Law Firm, APC

Re: Misrepresentation of Realtor

Although you were represented by a broker, their duty may not extend to the issues for which you are complaining. First, if a third-party inspector failed to catch the problems with the electrical outlets, then your claim is against the inspector and possibly the seller, not the broker. Unless the broker had actual knowledge that the outlets were not wired properly, the broker was under no duty to disclose this problem. Even assuming someone is liable for failing to disclose the outlets, the value of that claim is limited to the cost to repair, it doesn't allow you to undo the purchase. As far as the CC&Rs, your contract will dictate what you were supposed to received prior to close of escrow. In most cases, yes you should have received the CC&Rs, but again I fail to see how this is entirely the broker's fault. You should have demanded the copies before you closed escrow, or elected not to close escrow. That language (if you used a standard CAR form contract) was in the documents you signed, and you should have known exactly what you were supposed to receive prior to close. When you didn't get them, you should have insisted that escrow not close. Some of the blame may lay on the broker's shoulders, but three years later you may have a statute of limitations problem which may prevent a lawsuit. You need to consult with an attorney, or you could lost the right to pursue anyone who may be at fault here. One question, however; why would receipt of the CC&Rs have changed your mind, and caused you to cancel the transaction? If you can't answer that question, failure to receive them prior to close of escrow is probably a non-issue legally. As for what you should do, go to a real estate attorney immediately to have the entire transaction reviewed. Be forewarned, however, that the attorney might not find much or any fault on others' part.

*Due to the limitations of the LawGuru Forums, The Gibbs Law Firm, APC's (the "Firm") participation in responding to questions posted herein does not constitute legal advice, nor legal representation of the person or entity posting a question. No Attorney/Client relationship is or shall be construed to be created hereby. The information provided is general and requires that the poster obtain specific legal advice from an attorney. The poster shall not rely upon the information provided herein as legal advice nor as the basis for making any decisions of legal consequence.

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Answered on 12/12/08, 1:07 pm
OCEAN BEACH ASSOCIATES OCEAN BEACH ASSOCIATES

Re: Misrepresentation of Realtor

You may have an action for breach of fidicuary duty for failure to disclose if this has cost you damages. Contact me directly.

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Answered on 12/16/08, 12:43 pm


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