I purchased a home in California and the purchase closed in
mid-September.  The sellers knew they had previous termite damage
although they did not state anything about it in the disclosures.  I
do not know when they treated for termites but the neighbor saw the
damage and told me that he had previously helped them dig the trench
around the house with the termite company to treat for termites.

Specifically, in the "Supplement to the Real Estate Transfer
Disclosure Statement" document, section #10 (Reports), they checked
'No' stating they had no knowledte of inspection reports or repair
estimates made during or before their ownership.  They also left blank
the fill in section of section #10 which asks the following question.

In addition to the disclosures made above, the following matters may
materially affect the value or desirability of the property:

I would like to find case law for similar situations in California. 
From this information I hope to be able to find out how the plaintiffs
proceeded and what the outcome was, both financially and timeframe for
settlement.  My goal is to write up a clear case for mediation.

Is this a question that can be answered here?  Unfortunately this is
as much money as I can afford to give at the moment.

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Request for Question Clarification by pafalafa-ga on 24 Dec 2005 10:08 PST

snowbdr-ga,

There certainly is case law in CA regarding non-disclosure of
information during the sale of a home.  But whether these are the
"similar situations" you are looking for is hard to tell.

For instance, Godfrey v. Steinpress is the standard "termite" case in
CA, but in that case, the damage was so extensive, and the failure to
communicate so egregious, that it's hard to know how comparable (or
not) it is to your situation.

VASILOVICH v. BLANEY is another notable non-disclosure case, but here
the failure was not disclosing roof damage, rather than termite
damage.

I can summarize three or four of the main cases on this topic.  But be
advised, that more often than not, each situation in the case-law will
have some similarities, but also major differences, from your own.

Let me know your thoughts on how to proceed.


pafalafa-ga

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Clarification of Question by snowbdr-ga on 25 Dec 2005 09:08 PST

I am not sure what precisely to clarify so I will just do my best.

I do not yet know exactly when they had the house treated for termites
or who performed the treatment.  The neighbor said the neighborhood
has had a problem with termites because they also had to treat their
own house a few years ago.

The sellers realtor lives one house over from them (now me) and MAY
have known about this but I have no way of verifying yet.

As of right now, I have been told by two reputable contractors that
the front of the house must be torn out and completely replaced.  They
also said that they would not touch the job unless they could do it
right.  They feel the rest of the sheetrock in the house needs torn
out to verify if the other walls need replaced or not.

Again, what I believe to be the focal point of the case is their
checking "No" in the box that asked them whether or not they were
aware of any pest inspections during the time they lived at the
residence (20+years).  Also, I would imagine they would have to list
their possible concern that there may be damage done by the termites
in the fill in sesction of the disclosures regarding matters that may
materially affect the value or desirability of the property.

Since most home purchasors sign the agreement to take any disputes to
mediation, is that one reason there may not be a lot of case law? 
Since that will be the first step for my case before possibly going to
binding arbitration I would like to have as clear a case as possible
in my hand.

Thank you for you help in this matter!

I had a similar experience.  Mine was an undisclosed easement.  If the
disclosure form says "under penalty of perjury" you may have a crime. 
Also, the state may have a fraud statute as well.  But in TN where I
live neither is the case, so I am stuck with civil proceedings.  In
that regard, I have filed a claim against the title insurance company.
 In the end, we will have to compare two financial numbers, 1. Value
with the easement and 2. Value without the easement.  The difference
is what we will ask for.  Additionally we will ask for punitive
damages because here you can't claim for legal expenses.  Bottom
line....do not give up or give in.  Keep meticulous records.  Tape
record conversations if you have to.  Get everything under oath or
under penalty of perjury.  If you can get someone to testify that the
realtor knew, go after them as well.  The guy that sold me my property
lives next door.  I am going to own his house and his cows before this
is over.  Good luck to you.

WHOAH!  Tugtug, most of what you said is good advice, but "tape record
conversations" is NOT.  In California, it is a FELONY to tape record a
telephone conversation without the consent of ALL PARTIES, and you are
liable for civil damages of $5000 PER OCCURRENCE.

That said, I think Pafalafa-ga has the right approach, and Paf, the
cases you're talking about would suffice as an answer to the question.
 You might also include the relevant Civil Code provisions:
http://caselaw.lp.findlaw.com/cacodes/civ/1102-1102.18.html
If the facts are as reported, there is definitely a claim here.