QUESTION

How do I sue the seller of my new home who failed to disclose mold causing leaks and misrepresented working spa?

Asked on Jun 29th, 2015 on Real Estate - California
More details to this question:
Removal of carpet showed huge water gallon leak. Flooring repair $15k Sellers receipts show previous water heater leak. Not disclosed in sale. Leak caused mold and entire kitchen had to be gutted. New kitchen $20k seller made verbal and written statement that jacuzzi was working. Repairs total $8k. Loss of use of home 3months ($9k) Mental anguish/ possible health risks of exposure ($20k???)
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1 ANSWER

Real Estate Attorney serving Oakland, CA at Sack Rosendin LLP
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First, check your purchase and sale agreement (PSA). About 2/3 into it there may be a section requiring that you ask for and participate in mediation before starting a lawsuit or arbitration. If the other side agrees to mediation, I urge you to take an experienced real estate attorney with you. There are several complicated legal issues involved in your claim and in calculating your damages and the costs and risks of litigation. Without an attorney, someone might persuade you to settle for too little by telling you that your costs and risks of going to trial are higher than they really are. Next, check the PSA for an arbitration provision and an attorney fee clause. A lawsuit will take over a year to complete, unless it settles earlier, but many lawsuits don't settle until right before trial. Arbitration could take as little as 3-6 months. As a result, arbitration is likely to be cheaper. If there is an attorney fee clause, that can be used as a strong incentive for the other side to settle. If they make you take the case all the way to trial or arbitration, the attorney fees are likely to be more than the damages. Many cases settle in order to avoid the risk of attorney fees. On the other hand, waiving attorney fees is often one of the first concessions by the plaintiff in order to settle the case. Don't try to do this without a lawyer. It is complicated and difficult work even for attorneys. If you appreciate this free advice, please remember to refer me to any friends or acquaintances who need a lawyer. Referrals are still our best source of new business. Do you have a revocable living trust to protect your heirs against probate? Probate takes forever, is expensive, and is annoying. Do your family a favor. Set up a trust, and put all your property, especially any real property, into the trust. Since it is revocable, you can change it, add to it, take property out of it, or even cancel it completely, at any time. We set up such trusts, provide a pour-over will as a back-up for any property that does not make it into the trust, provide you with blank durable powers of attorney for health care and financial decisions, in case you become incapable of making such decisions while still alive, and convey one piece of real property to the trust, usually the family home, for $1500.00. If you would like to hire me to do this, let me know, and I'll send you a list of the information I need. Dana Sack  
Answered on Jun 29th, 2015 at 12:35 PM

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