Nondisclosure – Can Agents and Brokers be Subject to the Statutory Duties Under Cal. Civ. Code § 1102 et seq

When a buyer brings a nondisclosure or fraud claim against a seller and broker in a real estate sales transaction, the Transfer Disclosure Statement (“TDS”) determines whether there are grounds for a breach of statutory duty claim. If analysis of the TDS shows the documents was inaccurate or failed to disclose known material facts, a buyer has firm grounds to file a breach of statutory duty claim against both the Seller and Seller’s Broker. And this action is firmly supported by long-standing California law.

Section 1102.4(a) is generally held to suggest that a listing agent shall be liable for any of the following omissions:

• Within their personal knowledge
• Based on information timely provided by public agencies or by a person providing information as specified in this section
• Required to be disclosed [See Cal. Civ. Code § 1102.4(a)]

Additionally, Section 1102.9 states that an agent can amend the TDS if further information becomes known during the course of the transaction. And, in Loken v. Century 21 – Award Properties, (1995) 36 Cal. App. 4th 263, 274, the Court of Appeal held that a claim against a broker under Cal. Civ. Code § 1102 et seq for breach of statutory duty carries to a two-year statute of limitations. As such, this type of claim against a broker is sanctioned under California law.

If you’re a real estate buyer and feel material facts were not disclosed during escrow, contact one of our Los Angeles Real Estate Attorneys for a free consultation and case evaluation TODAY.