Gomez & Simone Los Angeles Attorney Blog

There can be a scenario wherein someone buys a dream home but soon realizes that there is a defect in the property, which was not disclosed by the seller. Such instances can make you feel cheated and disgusted. A leaking roof or a malfunctioning plumbing system can be examples of defects that you may notice after moving into a new residence. You may end up incurring plum bills to fix the issue. Now, it is important to understand that paying such bills is not your responsibility if the seller concealed the defects. You can also file a lawsuit to ensure fair compensation for the damages incurred.

Sellers Required To Make Written Disclosures Regarding Defects

According to California law, a seller must share true and real disclosures regarding their property with a buyer. Anything that may dissuade a buyer from making the purchase should be disclosed in writing at the very outset. These vital details about a property are commonly called “material” facts, and a property seller may have to face harsh penalties if any of these facts is not disclosed on time.

Defining Material Facts in California

The information about a housing facility’s walls, floors, insulation, roof, doors, windows, building foundation, sidewalks, boundary walls or fences, electrical systems, plumbing systems, and other structural elements comprises material facts. It basically means that any fact of the concerned property is a material fact and it can affect the value of the property or its desirability for a potential purchaser.

Under California law, a seller must disclose the material facts by completing a “Transfer Disclosure Statement” form. Through this form, the current status or condition of a property is described accurately. Before you decide to sue your seller, you should minutely verify the TDS to see if a defect that is upsetting you now was actually disclosed by the buyer or not.

Proving the Seller Hid a Defect

Once you are sure that the seller kept a known defect secret, you have the right to sue them for deceitful misrepresentation. Proving the seller’s fault in concealing the defect would be easy if you have sufficient evidence. For instance, a leaking roof that was intentionally covered with paint can act as solid proof. Another evidence to prove the seller’s wrongful intent would be the property agent’s statement suggesting the seller had instructed them to conceal the defect from you and other buyers.

Speaking to neighbors and your agent will assist you in collecting various related facts. If you decide to file a lawsuit, a competent attorney would interview the relevant people and try to establish that the seller knew about the defect, but kept it secret.

Seller’s Responsibility toward Damages Because of Cover-Up

Instead of unveiling the truth, if the seller knowingly hid a defect, you can sue them for wrongful misrepresentation. When you file a lawsuit, you may be eligible for the following damages:

1. a) Compensatory Damages:The court may order the seller to compensate you for the expenses you incur because of the concealed defect. These can include repair costs and reduction in the value of the property as a result of the defect.
2. b) Punitive Damages:You would be able to avail punitive damages if you prove that the selling party acted with malice while hiding the defect. Punitive damages are meant to punish people for their wrongful acts and they can be awarded to you along with the compensatory damages.
3. c) Rescission:This is a rare case wherein the purchase contract is nullified or rescinded, your payment is fully refunded, and the seller gets their property back.

Remember that suing a seller is not the only option, and resolving issues informally too can help you save a lot of time and money. It is recommended that you call up a home warranty company to find out if a problematic item in the house is under warranty. Repairs can be done free of cost if the warranty is still on. Ideally, you should write a letter to the seller explaining in detail all the issues you are facing. You can demand payments for all the expenses required for repairing or changing the defective items. If all these actions aren’t fruitful, you can always approach an attorney for legal help.

The year 2008 witnessed the crash of the housing market, which rocked the economy of the United States. The current surge in real estate prices in the country is making people think that the real estate bubble would burst again. According to a survey, 58 percent Americans believe that there would be a major slowdown in the housing sector in the next couple of years.

It may sound weird, but there are also some people who are waiting for the bubble to burst so that they can buy properties at comparatively cheaper rates. A study by the UBS also suggests that even overvalued cities like San Francisco and Los Angeles are not in the grip of the bubble risk yet. Housing costs in these cities have soared uncontrollably, but the bubble risk has not reared its ugly head yet. It is to be noted that a bubble forms when the prices of properties exceed their intrinsic value because of increasing demand.

Image Courtesy: Sourceable.net

Amongst the major US cities, San Francisco is believed to be the least unsafe. In the last six years, housing prices jumped by over 80%. Conversely, incomes have risen just about 20% in the previous decade. Los Angeles has also witnessed soaring housing prices in these 10 years, but the situation is not as bad as San Francisco’s. LA home prices haven’t reached their 2006 peak yet. Only inadequate housing is causing the hike in the process presently.

Whether there is a bubble or not, there are some experts who say that the housing market situation is still quite worrying. The increase in prices and interest rates is reducing the demand, which leads to low sales. In big US cities, affordability as well as availability of good lodging would continue to be major issues that may cause the bubble to pop in the future.

About Gomez & Simone

Gomez & Simone is home to experienced and reputed real estate law attorneys known for providing seamless solutions to clients. Their supremacy, strategies, and commitment are evident from the number of clients who approach us daily. Gomez & Simone has assisted numerous clients and businesses in recovering from financial losses and other such predicaments. Associating with them means your well-being will always be considered.

In a few years time, Fonda Theater on Hollywood Boulevard will have a tall company in the form of a 22-story structure. The building setup plan and design is out and the tower is supposed to be built at the site, which is a parking lot right now. The best part about this construction is it would have a total of 220 apartments, 11 of which would be moderately priced.

This news will certainly bring a ray of hope to those looking for an affordable accommodation. People working in Hollywood belong to various countries and they have been desperately searching for affordable homes for years.

Designed by HKS Architects, the building would comprise a four-story podium and 18 stories would be utilized for residential purpose. A full-fledged restaurant along with an outdoor dining area is planned to be built on the ground floor. A landscaped courtyard would offer pedestrians a lovely view along the Hollywood Boulevard facade.

Image Courtesy: HKS Architects

The residents of this new building would be able to park their vehicles in the two underground spaces. The construction is expected to commence in 2020 and should hopefully be completed by 2022. This is a major project planned for this Hollywood area to attract tourists and residents, and there are many other residential and commercial projects in the pipeline.

About Gomez & Simone

Gomez & Simone is home to experienced and reputed real estate law attorneys known for providing seamless solutions to clients. Their supremacy, strategies, and commitment are evident from the number of clients who approach us daily. Gomez & Simone has assisted numerous clients and businesses in recovering from financial losses and other such predicaments. Associating with them means your well-being will always be considered.

When it comes to important real estate markets such as California, adverse possession is not a new phenomenon. Major cities like Los Angeles have seen numerous cases of adverse possession. As a California resident, it’s important to understand the nuances behind this type of ownership. State laws decree that trespassers can take possession of certain portions of your property under the principle of ‘adverse possession’.
The law states that trespassers may assume ownership of land if the real owner is unsuccessful in putting up an objection within a stipulated period of time. Such ownership is legalized if the trespasser pays property taxes on time for the said piece of land. As a property owner, it’s imperative to ensure that no one is able to make an unlawful entry into your property or estate. On the other hand, it’s equally possible that you may need to claim adverse possession of a certain piece of land. For these reasons, it’s important to gain a proper understanding of California’s adverse possession laws.

Image Courtesy: Aviara Real Estate

How Adverse Possession Laws Work:

The concept of adverse possession originated in old Britain. The principle still prevails in the US and numerous other countries with a view to ensuring that a fair decision can be made when an owner neglects or forgets about a property for a long period of time.
Acquiring property through adverse possession in California isn’t easy under the existing state laws. Establishing proof of ownership is usually a major hurdle for any trespasser. As the rightful owner, you have every right to hold on to your property unless the adverse squatter can prove in a court of law that he or she deserves to get ownership of the property or a certain part of it.
At the same time, it is important not to confuse adverse possession with other analogous laws. For instance, easements such as using a common driveway belonging to a neighbor should not be confused with adverse possession. Easement refers to shared property rights of people staying close together, but doesn’t imply shift in title as in the case of adverse possession.

Image Courtesy: Point of Beginning

Adverse Possession in California:

Like most states in the US, adverse possession rights in California are determined by the nature in which an intruder comes to possess the property and the duration of that possession.
There are four important factors that are taken into account while legitimizing an adverse possession claim:

a) Hostile Claim:

Under this provision, the adverse possessor must:
• Commit an honest blunder (like relying on a wrong deed),
• Simply occupy the property (with or without the knowledge that it is a private property),or
• Be conscious of his/her trespassing.

b) Actual Possession:

This implies that the trespasser should currently be living on the property and taking care of it as his or her own.

c) Open and Notorious Possession:
The reference here is to an act of intruding that cannot be a secret.

d) Exclusive and Continuous Possession:

The trespasser does not share land possession with others, and must possess the property for an uninterrupted period of time.

Depending on your perspective, the adverse possession doctrine could be either fair or unjust. Fortunately for property owners, gaining property through adverse possession is not an easy task. A proper understanding of the law is certain to help your cause. An experienced real estate attorney could help you understand the nuances of the law and support you during litigation.