Buyer wants to sue after closing

Investor · CA · Member since 2023 · 196 posts · 107 votes

Buyer acquired my parents' Lake Tahoe house and 6 months later is trying to sue them for not disclosing any and all repairs made to the property in the last 20 years. My parents didn't intentionally hide any repairs. They just didn't think random repairs here and there were a big deal and now buyer is suing them. Has anyone anyone ever experienced this before? My dad is just a guy in his 80s who tried to fix things along the way and now this is happening. My parents have a lawyer, but I would like to see what you all think. Thanks in advance!

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Stuart UdisPro Member

Attorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes

10mo

As a general rule of thumb it’s not wise to discuss active litigation in public internet forums.

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Steve K.
Realtor · Boulder, CO · Member since 2016 · 3k+ posts · 5k+ votes
10mo
Can any of the "random repairs here and there" be considered material facts that would have affected the properties value and the buyers decision to buy had they known? Were they issues that the buyers could have uncovered on their own during the inspection/ due diligence? What are the buyers claiming their damages are/ what did they find wrong with the property that they're claiming should have been disclosed? Not legal advice, not a lawyer.
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- Scott JohnsonBusiness Member
  Specialist · Greenville, NC · Member since 2019 · 673 posts · 408 votes
  10mo
  @Steve K. And is it a Buyer Beware state?
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Stuart UdisPro Member
Attorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes
10mo
As a general rule of thumb it’s not wise to discuss active litigation in public internet forums.
[email protected]
6 Reply
Theresa HarrisPro Member
Member since 2019 · 15k+ posts · 11k+ votes
10mo
Unless they were major repairs and are not complete (ie the defect still exists), they don't have to disclose anything. My guess is this is a clueless person and it might be their first home. I know someone who had major structural repairs done to their home and were told by their lawyer (because lawyers were involved with the builder) that they didn't have to say anything when they sold the property because the damage was fixed (the sellers did tell the buyers and also mentioned it was under warranty).
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- Steve K.
  Realtor · Boulder, CO · Member since 2016 · 3k+ posts · 5k+ votes
  10mo
  Quote from @Theresa Harris:
  
  Unless they were major repairs and are not complete (ie the defect still exists), they don't have to disclose anything. My guess is this is a clueless person and it might be their first home. I know someone who had major structural repairs done to their home and were told by their lawyer (because lawyers were involved with the builder) that they didn't have to say anything when they sold the property because the damage was fixed (the sellers did tell the buyers and also mentioned it was under warranty).
  This is not necessarily accurate Theresa, as in some states like CA (where the property might be depending on which side of Lake Tahoe it is on, I believe the state line runs through the middle of the lake?), it is required to disclose major repairs that were done even if the repairs are complete. Each state has their own disclosure laws and some have required disclosure forms the seller must fill out that ask about any repairs that have been completed (like I believe CA does but I am not active there so I could be wrong). Stuart is correct, OP should defer to their local lawyer for this reason.
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Russell BrazilBusiness Member
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Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
10mo
Nevada requires the seller to fill out a disclosure form. If they filled it out honestly, then they are all good. If they didnt fill it out, or omitted things clearly asked in the form they are liable for up to 3x the cost of the repair.
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Alan F.
Flipper/Rehabber · CA · Member since 2023 · 1k+ posts · 1k+ votes
10mo
Since the OP put California on the header of his post, Ill assume as such. California requires full disclosure on all work performed on a house, even if a problem was remediation. A Tansfer Disclosure Statement is required for all defects (repairs) past or present, permitted or not.
Some common small repairs that require permitting (well outlined on SLT website) are; replacing water heater, repairing/adding any electrical, replacing windows/exterior doors, adding/upgrading plumbing. California has very strict building codes including title 24 compliance , BESS & IECC standards.
I concur that knowledgeable legal counsel be secured.
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Jules Aton
MD/DC · Member since 2024 · 1k+ posts · 1k+ votes
10mo
A bit off topic but I will never buy what I think might be a fluff up from an old Harry Homeowner type again without pricing it as a near gut job. Got burnt years ago, in a disclaim not disclose deal, so not much I could do except get my home inspection fee back and eat an additional 10k in renovation which is probably 2xs that in todays dollars.
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- Alan F.
  Flipper/Rehabber · CA · Member since 2023 · 1k+ posts · 1k+ votes
  10mo
  Quote from @Jules Aton:
  
  A bit off topic but I will never buy what I think might be a fluff up from an old Harry Homeowner type again without pricing it as a near gut job. Got burnt years ago, in a disclaim not disclose deal, so not much I could do except get my home inspection fee back and eat an additional 10k in renovation which is probably 2xs that in todays dollars.
  
  In CA building codes are revised frequently, electricians must take "on going education " & test & re-certify with the state annually. Utilities require specialized testing & certification from the private sector. HVAC contractors should be well versed in manual J, S & D engineering requirements. Plumbers have very specific code requirements & Framers/GC's should have seismic & engineering experience. California's Contractor License Board is the oldest in the nation.
  2 Reply
Tim Bee
OP
Investor · CA · Member since 2023 · 196 posts · 107 votes
10mo
1 Reply
- Steve K.
  Realtor · Boulder, CO · Member since 2016 · 3k+ posts · 5k+ votes
  10mo
  Quote from @Tim Bee:
  
  This house is in CA. The repairs were mostly repairing drywall, some decking, some flooring. The buyer had a home inspection done prior to closing. The buyer is a general contractor and spent about 8 hours going through the house inch by inch prior to closing as well. After closing I think he found some old dry rot some where and began tearing apart the the wall. No leaks were found but apparently according to him the wrong wood was used. It appears the buyer got more curious and began pulling apart the deck and found improper brackets were used from who knows how long ago. It seems like he has now developed this laundry list of complaints. The neighbors say this buyer is a real A hole. Never the less according to CA real-estate law apparently it's required that this be handled through mediation and then possibly arbitration. I personally wouln't pay the buyer a dime but we'll see what happens. I was just posting on here to see if anyone had any experience with this type of thing.
  In my non-legal opinion, given the info provided, I think it will be an uphill battle for this buyer to prove that the seller failed to disclose material issues that would have affected the value of the property or the buyer's decision to purchase it. I believe that they'll have to provide evidence of the defect, the seller's knowledge of it, and prove that the buyer had financial losses because of it. Who knows if those brackets were considered acceptable whenever they were installed or not, or who installed them, or who knew that they were the wrong kind. Same with the wrong kind of wood being used: how would your typical home-owner even know that? Seems like this guy should just build his own house if he expects it to be perfect, and pursuing legal action is probably a waste of everyone's time and money, but people can be crazy. If I were the seller I would cut off all communication with the buyer and just let the attorney's handle it. Good luck!
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- Tim Bee
  OP
  Investor · CA · Member since 2023 · 196 posts · 107 votes
  10mo
  Quote from @Steve K.:
  
  Quote from @Tim Bee:
  
  This house is in CA. The repairs were mostly repairing drywall, some decking, some flooring. The buyer had a home inspection done prior to closing. The buyer is a general contractor and spent about 8 hours going through the house inch by inch prior to closing as well. After closing I think he found some old dry rot some where and began tearing apart the the wall. No leaks were found but apparently according to him the wrong wood was used. It appears the buyer got more curious and began pulling apart the deck and found improper brackets were used from who knows how long ago. It seems like he has now developed this laundry list of complaints. The neighbors say this buyer is a real A hole. Never the less according to CA real-estate law apparently it's required that this be handled through mediation and then possibly arbitration. I personally wouln't pay the buyer a dime but we'll see what happens. I was just posting on here to see if anyone had any experience with this type of thing.
  In my non-legal opinion, given the info provided, I think it will be an uphill battle for this buyer to prove that the seller failed to disclose material issues that would have affected the value of the property or the buyer's decision to purchase it. I believe that they'll have to provide evidence of the defect, the seller's knowledge of it, and prove that the buyer had financial losses because of it. Who knows if those brackets were considered acceptable whenever they were installed or not, or who installed them, or who knew that they were the wrong kind. Same with the wrong kind of wood being used: how would your typical home-owner even know that? Seems like this guy should just build his own house if he expects it to be perfect, and pursuing legal action is probably a waste of everyone's time and money, but people can be crazy. If I were the seller I would cut off all communication with the buyer and just let the attorney's handle it. Good luck!
  Thanks Steve, appreciate the reply!
  1 Reply
Henry Lazerow
Real Estate Agent · Chicago, IL · Member since 2017 · 2k+ posts · 2k+ votes
10mo
You do not need to disclose past repairs. Even if there was a fire or major structual issue as long as you have fixed it this is no longer a disclosure item. If they knew of hidden defects but did NOT fix it, now that is when a disclosure is needed. Just hire a lawyer and let them deal with it. Unlikely the lawsuit will get anywhere. Did they even actually sue? Tons of people threaten to sue hopíng you give them some easy money back but never actually do sue.
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- Steve K.
  Realtor · Boulder, CO · Member since 2016 · 3k+ posts · 5k+ votes
  10mo
  Quote from @Henry Lazerow:
  
  You do not need to disclose past repairs. Even if there was a fire or major structual issue as long as you have fixed it this is no longer a disclosure item. If they knew of hidden defects but did NOT fix it, now that is when a disclosure is needed. Just hire a lawyer and let them deal with it. Unlikely the lawsuit will get anywhere. Did they even actually sue? Tons of people threaten to sue hopíng you give them some easy money back but never actually do sue.
  
  It sounds odd coming from a caveat emptor state but apparently in CA where the property is, it actually is required to disclose past repairs even if they are complete. I doubt that every single little repair ever made like replacing the faucets, etc. needs to be disclosed, I imagine this is limited to material repairs like major plumbing issues, structural issues, major modifications without a permit etc.
  Totally agree that most buyers who threaten to sue end up realizing it will not be worth their time and money, especially in caveat emptor states. Proper due diligence and negotiating accordingly prior to closing is critical!
  2 Reply
Greg Morris
New Albany, OH · Member since 2009 · 10 posts · 5 votes
10mo
20 years sounds ridiculous. In many states, the disclosure of an issue or a repair has a 5-year limit. If you had a leaky roof, flood damage etc, but it was repaired and you havent had another issue in 5 years, it does not need to be disclosed.
1 Reply
Henry Lazerow
Real Estate Agent · Chicago, IL · Member since 2017 · 2k+ posts · 2k+ votes
10mo
Wow that’s crazy yes looks like in California it is required. Would be hard to remember all the repairs done over life of building, I see how this can create problems later on.
1 Reply
Josh C.Pro Member
Property Manager · Indianapolis, IN · Member since 2010 · 1k+ posts · 1k+ votes
10mo
@Greg Morris
Some law in CA sounds ridiculous?!?!? That’s so unlike them?
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