When the Seller Didn't Tell You Everything — or the Buyer Claims You Didn't
Potier Law Group is a family-owned law firm based in Long Beach, California. Clients across real estate litigation, landlord-tenant law, probate and estate planning, business law, personal injury, and bankruptcy matters have left reviews describing their experience working directly with the firm's attorney.
What California Law Requires Sellers to Disclose
California imposes some of the most comprehensive real estate disclosure requirements in the country. Sellers of residential property must complete a Transfer Disclosure Statement (TDS) covering the property's physical condition, known defects, and any material facts that could affect its value or desirability. Additional disclosures may be required depending on the property's location, age, and history.
The most common disclosures at issue in litigation include:
- Known structural defects, including foundation problems, roof damage, or water intrusion
- Unpermitted additions or improvements
- Pest or mold conditions the seller was aware of
- Property line or easement disputes
- Neighborhood nuisances or zoning issues that materially affect use
- Deaths on the property within the past three years
- Prior insurance claims or litigation involving the property
- HOA assessments, pending special assessments, or known rule violations
The legal standard is what the seller knew or should have known. Sellers cannot avoid liability simply by claiming they were unaware of a defect if the evidence shows they had reason to know about it.
California law requires sellers to disclose known material facts about a property before a transaction closes. When that obligation isn't met — whether through deliberate concealment, careless omission, or a listing agent's failure to pass information along — the buyer who closes escrow inherits a problem they never agreed to take on. On the other side, sellers and agents sometimes face disclosure claims that overreach or misrepresent what was actually known at the time of sale.
A real estate disclosure dispute attorney handles both positions: buyers who discover defects after closing and need to pursue a remedy, and sellers or agents defending against claims that their disclosures were incomplete or misleading. These cases require a close reading of the transaction record, the disclosure documents, and California's statutory requirements — and they benefit from an attorney who knows how a real estate transaction is supposed to work from the inside.
What a Real Estate Disclosure Dispute Actually Looks Like
How Disclosure Failures Lead to Litigation
Most disclosure disputes surface after closing, when the buyer discovers a condition that wasn't reflected in the paperwork. The timeline matters: California law gives buyers a window to bring certain claims, and delays in seeking legal advice can limit available remedies.
Common paths to litigation include:
- A buyer discovers a defect during renovation or after a weather event that the seller's inspection records show had been previously identified
- A seller's agent fails to include known information in the TDS or advises the seller to omit it
- A buyer's agent fails to investigate or communicate a disclosed condition adequately
- The seller completes the TDS inaccurately, either through misunderstanding or intentional omission
- A material fact surfaces in the transaction record — an email, a prior repair invoice, a prior inspection report — that contradicts what was disclosed
When the evidence supports it, buyers may have claims for fraudulent misrepresentation, negligent misrepresentation, or breach of contract. Sellers and agents facing those claims have defenses available as well, particularly where the alleged defect was either disclosed, reasonably discoverable, or outside the seller's actual knowledge.
Why This Firm Handles Disclosure Cases Differently
Our senior partner has practiced real property law since 1996 and spent years in the real estate industry before that — including running a real estate company and heading the sales department at First American Title Insurance Company. That background means she understands how transactions are documented, where disclosures tend to break down, and what a buyer or seller actually knew at each stage of the deal. That is not a credential most litigation attorneys can offer.
We handle disclosure disputes from investigation through resolution. If a case can be settled on terms that make the client whole, we pursue that outcome. If it can't, we litigate. The same attorney who evaluates your case at the outset will handle it through to conclusion — we don't reassign files or sub work out to outside counsel. Clients speak directly with their attorney, and calls and emails are returned the same day.
We serve buyers, sellers, and real estate professionals across Long Beach, Torrance, Lakewood, Cerritos, Seal Beach, and throughout the surrounding areas of Los Angeles and Orange County.
Customer testimonials on Google
Worked With Us? Tell Others About It.
If Potier Law Group helped you with your matter, a review helps the next person in a similar situation find us — and it takes less than a minute.
Common Questions About Real Estate Disclosure Disputes
How long do I have to bring a disclosure claim after buying a property in California?
The statute of limitations depends on the type of claim. Fraud-based claims generally carry a three-year limitations period from the time the buyer discovered or should have discovered the misrepresentation. Contract-based claims may carry a different period. If you've recently discovered a problem with a property you purchased, the safest step is to consult an attorney promptly — delay is one of the most common ways buyers lose otherwise valid claims.The statute of limitations depends on the type of claim. Fraud-based claims generally carry a three-year limitations period from the time the buyer discovered or should have discovered the misrepresentation. Contract-based claims may carry a different period. If you've recently discovered a problem with a property you purchased, the safest step is to consult an attorney promptly — delay is one of the most common ways buyers lose otherwise valid claims.Can I sue the seller's real estate agent, not just the seller?
Yes. California law imposes disclosure duties on listing agents independently of the seller. If an agent knew about a material defect and failed to disclose it, or actively advised the seller to omit it, the agent can be named as a defendant in the same action. Broker liability may also be at issue depending on the agent's supervision and the brokerage's policies.Yes. California law imposes disclosure duties on listing agents independently of the seller. If an agent knew about a material defect and failed to disclose it, or actively advised the seller to omit it, the agent can be named as a defendant in the same action. Broker liability may also be at issue depending on the agent's supervision and the brokerage's policies.What if the defect was visible and the buyer had an inspection done?
A buyer's inspection doesn't automatically bar a disclosure claim. The relevant question is whether the defect was reasonably discoverable by the inspector, and whether the seller had specific knowledge that wasn't reflected in the disclosures. If a seller knew about a prior repair, a prior inspection report, or an ongoing condition that wasn't visible at the time of the buyer's inspection, that knowledge may still be actionable.A buyer's inspection doesn't automatically bar a disclosure claim. The relevant question is whether the defect was reasonably discoverable by the inspector, and whether the seller had specific knowledge that wasn't reflected in the disclosures. If a seller knew about a prior repair, a prior inspection report, or an ongoing condition that wasn't visible at the time of the buyer's inspection, that knowledge may still be actionable.I'm a seller and a buyer is threatening to sue me over a disclosure. What should I do?
Don't respond to the buyer's attorney directly without your own counsel. The first step is a careful review of your TDS, any supplemental disclosures, your inspection records, and the transaction correspondence. Many disclosure claims are overstated or target conditions that were either disclosed or outside the seller's actual knowledge. We regularly defend sellers in these situations and can assess the strength of the claim quickly.Don't respond to the buyer's attorney directly without your own counsel. The first step is a careful review of your TDS, any supplemental disclosures, your inspection records, and the transaction correspondence. Many disclosure claims are overstated or target conditions that were either disclosed or outside the seller's actual knowledge. We regularly defend sellers in these situations and can assess the strength of the claim quickly.How are disclosure dispute cases typically resolved?
A significant number settle before trial, often through mediation. California real estate purchase contracts typically include a mediation clause that requires the parties to attempt mediation before filing suit. Where the evidence is strong and the damages are clear, settlement can be an efficient path to recovery. Where the claim is weak or the damages are disputed, litigation may be necessary. We assess each case individually and give clients a realistic picture of what resolution is likely to look like.A significant number settle before trial, often through mediation. California real estate purchase contracts typically include a mediation clause that requires the parties to attempt mediation before filing suit. Where the evidence is strong and the damages are clear, settlement can be an efficient path to recovery. Where the claim is weak or the damages are disputed, litigation may be necessary. We assess each case individually and give clients a realistic picture of what resolution is likely to look like.
Speak With a Real Estate Disclosure Attorney
If you're dealing with an undisclosed defect, a disputed TDS, or a disclosure claim filed against you, the facts of the transaction matter more than general rules. We review the documentation, assess the strength of the position, and give you a clear picture of your options before any commitments are made. Contact Potier Law Group to schedule a consultation.
Call Potier Law Group:
562-986-9900
You'll hear back from an attorney — not an assistant — the same day.