QUESTION

Putrid/foul smell in neighborhood not disclosed by seller

Asked on Oct 07th, 2015 on Real Estate - California
More details to this question:
Hi, I just bought a house in Santee, CA and every time it rains, there is a foul smell that comes up at night from outside and seeps into the house. I called the city and was told that this is due to the house being near the San Diego river that's drying up and the rain stirs up any decomposing matter in the river bed. This is my first house purchase and in reviewing the disclosure statements from the seller, there was no mention of a smell in the neighborhood. The smell is completely unbearable and enters the house even after I closed all the windows and HVAC vent outlets. I would like to sell the house, but I'm going to lose tens of thousands on commissions plus all the work I had done to the house. Is a legal recourse to compensate for the financial loss if I sell the house? Thanks.
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1 ANSWER

Real Estate Attorney serving Oakland, CA at Sack Rosendin LLP
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The seller is required to disclose to prospective buyers any problem with the property which prospective buyers cannot discover by conducting a reasonably thorough inspection of the property and the neighborhood, and about which the seller has actual knowledge. From what you describe, I don't see how you could discover the problem until it rained, and I don't see how the seller could not have known about it, if they had lived there through a couple of winters. One of your possible remedies for fraud is rescission. That's where you promptly and without delay, send the seller a written notice (not an email or phone call), describing the fraud, declaring that you are rescinding the contract, and demanding that they agree to take back the home and pay you back what you paid for it. If they refuse, then you check your contract. Many California home purchase contracts require that you go to mediation before arbitration or a lawsuit. Many such contracts also require arbitration instead of a court lawsuit. Both are cheaper and faster than a lawsuit, but there are some rights you lose, like strict adherence to the rules of evidence, a jury trial, and the right to appeal a material mistake by the judge. Your other remedy is to demand and arbitrate or sue for damages. The measure of your damages is NOT the difference between what you paid and what you sell it for. The correct amount of your damages is the difference between what you paid and what a reasonable buyer who knew about the problem would have paid if that buyer had known about the problem. This might be a lot, but it might not be much. You paid a price similar to what others had paid for similar homes in the area, and those buyers probably were told about the problem and still paid about the same price you did. Expert testimony would be required regarding these values. What are your neighbors doing about the smell? Are they just living with it? Maybe they have found a solution. 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 Oct 07th, 2015 at 12:21 PM

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