If a California seller knows about a material property defect, the seller usually must disclose it before closing. A buyer’s inspection does not excuse a seller’s silence. An “as-is” sale does not allow a seller to conceal known defects. And if the undisclosed issue affects value, safety, desirability, or use, the buyer may have claims for fraud, concealment, negligent misrepresentation, breach of contract, rescission, damages, and in serious cases punitive damages.
The key issue is usually not just whether the property had a problem. The key issue is whether the seller knew about the problem, whether it was material, whether it was disclosed, and whether the buyer suffered damages because of the omission.
California sellers must disclose known material facts
California Civil Code section 1102 requires sellers of most …
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