Q: I bought a house that was in a revocable trust. Can I sue the fiduciary owner and recover money for unpermitted work?
The seller submitted permit applications as owner/builder for two complex powered patios, but did not receive permits and the apps expired years ago. He also signed disclosures in the sale to me last year that there was no unpermitted work or structures not in compliance with building code. Both statements are false. I have the unfulfilled permit applications from the county with his name on them and structural engineers tell me if they can be brought into compliance and permitted, it will be very costly. Or they will need to be torn down. I also have the false disclosure statement. He appears to be living out of state now (I am in California). It's becoming possible the structures will need to be torn down, as they are way out of permitting compliance. How could I proceed? Can I serve the beneficiary / fiduciary owner with a civil action or summons to arbitration? Would I be able to sue him for assets such as the trust and proceeds from the house sale?
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A:
Under California law, if a seller makes false representations about the condition of a property, they can be held liable for damages. Here, based on the evidence you've presented, there seems to be a strong case for misrepresentation or fraud, given the false disclosure statement and unpermitted work. You can initiate a civil action against the seller, regardless of their current out-of-state residence. Serving them can be done following California's procedures for serving out-of-state defendants.
As to recovering from the trust assets, it depends on the nature and provisions of the trust. Generally, a revocable trust's assets may be accessible if they are part of the seller's personal assets. It's essential to review the specifics of the trust and consult with an attorney experienced in real estate and trust litigation to evaluate the best course of action.
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