Question:
“We sold our house in Orange County in April and forgot to disclose that the fireplace was pulling away from the house. The buyer didn’t bother to have an inspection and now they’re threatening to sue us for the fireplace repair, which is around $5,000. Isn’t the buyer the one responsible if they decide to waive an inspection that would have found the problem?”
Answer:
I’m no attorney, but here’s my take…
Yes, the buyer should have had an inspection and was foolish to waive it.
But that didn’t relieve you of your legal disclosure obligations. Under California Civil Code and common law, you as the seller have a duty to disclose all facts that could “materially affect the value or desirability of the property.” This includes, but is not limited to, physical conditions of the property.
If you breach this duty, you may be liable for actual fraud, negligence, and breach of contract. And you may have to pay punitive damages and attorneys’ fees plus compensatory damages.
I highly advise you to seek legal counsel immediately. And consider paying the $5,000 or negotiating a settlement and having them sign a document drawn up by your attorney relieving you of further liability for the fireplace.
