Legal Question in Real Estate Law in California

The seller misrepresented the property by stating that it had been newly remodeled (specifically new kitchen cabinets), The house was in fact remodeled but very poorly and it has now cost me close to $15,000 to make it livable. The seller also charged me a $3000 perdime because the escrow took longer than expected claiming the house was ready to be moved in to but after escrow closed I found out that some work was done with out permit and the kitchen closets were not new like promised in fact in the inspection they are reported to be 80% usable which is clearly not how a brand new kitchen would rate. (although I would have to say that in my opinion and pictures that I have taken the cabinets before changing them the condition was very poor). I want to see if I can sue for the $3000 and possibly everything I have now spent on the house. I have an FHA loan and the house was supposed to be ready to move in. I have photos of all the damages before repairs. Also, escrow closed on Jan 4th, 2010.


Asked on 2/23/10, 8:29 pm

1 Answer from Attorneys
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

The case seems pretty weak to me because the seller's claim sounds very unspecific and also relating to a matter or matters that were clearly visible. In order to prove fraudulent misrepresentation, you must show that the seller deliberately misstated (or concealed) a material fact, and that you reasonably relied upon the misrepresented or concealed fact. These don't sound like hidden defects, nor does it sound as though the seller said anything about quality. I'm not saying your case cannot be won, just that it is not particularly strong.

Further, as to the per diem, how was the seller successful in adding this onto the price you had to pay? Generally, the price for real property is set forth in the contract. Did it also include per diem? More frequently, it goes the other way - the seller doesn't vacate by the closing date, and has to pay rent to the buyer.

I'd encourage you to negotiate this with the seller and the seller's broker and try to arrive at an out-of-court settlement; your prospect in court is that your legal fees will exceed your potential recovery, if any.

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Answered on 2/28/10, 8:45 pm


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