Laguna Beach, CA asked in Real Estate Law for California

Q: After removal of contingency, we found out facts concealed from us. Can we ask for further inspection?

We bought a house which is in escrow now. We did inspection and removed contingencies. While shopping for insurance, we found out there were two leaks that seller hadn't disclosed to us. We asked for lowering the price based on that which seller didn't accept. Now we are asking for mold test and they don't agree to that.

Based on the new finding (which seller willfully or unwillinglyhadn't disclosed to us), we need to know if the house has mold problem or not.

Do we have that right or not?

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1 Lawyer Answer

A: FIrst of all, the seller's disclosure obligations in California are extensive and the seller's failure to disclose material information in this instance appears to be a basis for rescinding the contract for fraud. Your waiver of contingencies was based upon the representations they made to you and the facts they concealed from you. This is not going to help you buy the house, however. Does the seller have a real estate broker? If so, I suggest you contact the broker and have them explain the disclosure obligation and the consequences of their failure to disclose. You should also find out if the seller's broker knew of the leaks because they too have an obligation to disclose to you information that they knew about that is material.

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