The following represent the cases listed by Attorney George Wolff for Disclosure Statement Precedents related to "As Is Sales". Wolff claims to handle Real Estate Related Cases from his San Francisco office. Wolff has an engineering undergraduate degree from the Midwest and then he moved to California to study and practice law. It's apparent from these summaries he was interested at one time in pursuing Real Estate Cases and Brokerage Fraud. A conversation with him suggests he may have had his a-s handed to him and just forgotten to remove all references to his hard work from his website and the www.
View PDF - This PDF was found online. It was authored by George Wolff Esquire. It provides summaries to the cases above. It ALSO provides a section related to Broker Involved Disclsoure Fraud. We highlight those cases in a related website, but they can be found in this document too.
View gDoc - My master docuemnt for case precedents.
SELLER'S DUTY TO DISCLOSE
"The common law has for decades imposed duties on sellers of real estate, particularly residential real estate such as homes, condominiums, etc., to disclose to the buyer “any material facts known to the seller affecting the value or desirability of the real estate “ being sold.
STATUTORY DUTY TO DISCLOSE - CA 1102
per Attorney George Wolff
In 1985 the California General Assembly added an article to the Civil Code, § 1102 et seq., entitled "Disclosures Upon Transfer of Residential Property." (Stats. 1985, ch. 1574, § 2, p. 5788.) Real Estate contracts also usually require disclosures pursuant to this statute, as well as other disclosures. Other statutes also impose other disclosure obligations in sales of this type. Before execution of a residential sales contract, the seller or his or her broker is required to deliver the statutory real estate transfer disclosure statement to the buyer, which contains a checklist to give notice of problems or potential problems with the property. Civil Code §§ 1102.3, 1102.6. The form Transfer Disclosure Statement (“TDS”) disclosure shall be filled out and made in "good faith," which is expressly defined to mean "honesty in fact in the conduct of the transaction." Civ. Code § 1102.7 (emphasis added)
DUTY TO DISCLOSE TO AVOID FRAUD OR DECEIT IN THE TRANSFER TRANSACTION
Shapiro v. Sutherland (1999) 64 Cal. App. 4th 1534, 1545
The specification in the law and the TDS of particular matters to be disclosed was not intended to limit or abridge any obligation for disclosure by law which may exist to avoid fraud or deceit in the transfer transaction. Civ. Code, § 1102.8, 1572(3), 1710(3);
DUTY TO DISCLOSE - COMMON LAW and STATUTORY
1 Miller & Starr, California Real Estate (3d ed. 2005) § 1:140
In California, the seller of a residence has both a common law and statutory duty of disclosure to the buyer, and even full compliance with the statutory duty does not excuse the common law duty.
DUTY TO DISCLOSE - COMMON LAW
Lingsch v. Savage, supra, 213 Cal. App. 2d at 735
"where the seller knows of facts materially affecting the value or desirability of the property which are known or accessible only to him and also knows that such facts are not known to, or within the reach of the diligent attention and observation of the buyer, the seller is under a duty to disclose them to the buyer."
FAILURE TO DISCLOSE GIVES RISE TO CAUSE OF ACTION FOR RESCISSION AND DAMAGES
Shapiro v. Sutherland, supra, 64 Cal.App.4th at p.1544; Karoutas v. HomeFed Bank (1991) 232 Cal. App. 3d 767, 771. -
"A breach of this duty of disclosure will give rise to a cause of action for both rescission and damages. [Citation.]”'.
HALF TRUTHS ARE UNACCEPTABLE
San Diego Hospice v. County of San Diego (1995) 31 Cal.App.4th 1048, 1055, fn. 4.
"A duty to disclose may also arise in the so-called `half-truth' context--that is, when a speaker makes a representation which, though not false, he knows will be misleading absent full disclosure of additional facts known to him which qualify the initial representation."
SUPPRESSION AND OMISSION OF FACTS UNACCEPTABLE
Marketing West, Inc. v. Sanyo Fisher (USA) Corp. (1992) 6 Cal.App.4th 603, 613
Where one undertakes to speak to a matter, he must not only state the truth, he also must not suppress or conceal facts within his knowledge that materially affect those stated.
FULL STATEMENTS REQUIRED
Jacobs v. Freeman (1980) 104 Cal.App.3d 177, 192
In other words, when one speaks at all, he must make a full disclosure on the subject.
FULL STATEMENTS REQUIRED
Marketing West, Inc. v. Sanyo Fisher (USA) Corp., supra, 6 CaLApp.4th at 613;
Lacher v. Superior Court (1991) 230 Cal. App. 3d 1038, 1046-1047
Thus, a duty to fully disclose may arise from a partial disclosure that is likely to mislead, if other material facts are not also disclosed.
AS IS SALE clause and BUYER INSPECTION clause do NOT release liability for Fraudulent misrepresentations concerning known defects not otherwise visible or observable to buyer .
Loughrin v. Superior Court (1993) 15 Cal.App.4th 1188, 1195; view
Shapiro v. Hu (1986) 188 Cal. App. 3d 324, 333-334, 233 Cal. Rptr. 470; view
Lingsch v. Savage (1963) 213 Cal. App. 2d 729,740-742,29 Cal. Rptr. 201;
Greenwald & Asimow, Cal. Practice Guide: Real Property Transactions (The Rutter Group 2005) § 4:3 52, p. 4-86.10;
1 Miller & Starr, California Real Estate supra, §1:154
Neither an "as is" sale nor the buyer's independent inspection exonerates a seller or the seller's agent from fraudulent misrepresentations concerning known defects not otherwise visible or observable to the buyer.
AS IS SALE clause does NOT relieve seller of liability for Misrepresenting Condition, Failing to Disclose Facts, or Concealment
Lingsch v. Savage, supra, 213 Cal. App. 2d at 742;
Galen v. Mobil Oil Corp., 922 F. Supp. 318, 324 (C.D. Cal. 1996)
"[W]here the seller actively misrepresents the then condition of the property or fails to disclose the true facts of its condition not within the buyer's reach and affecting the value or desirability of the property, an `as is' provision is ineffective to relieve the seller of liability arising from the concealed condition."
add Jue v Smiser and Bagdasarian v Gragnon someday