Bought a House With Problems Not Disclosed? Your CA Options

If you bought a house with problems not disclosed by the seller, California law may give you options. For sales of homes with one to four units, with some exemptions, the seller must hand the buyer a written Real Estate Transfer Disclosure Statement, and every disclosure must be made in good faith. A seller who willfully or negligently fails to meet that duty can be liable for the buyer's actual damages. This guide is general information, not legal advice.

Picture a buyer in Riverside who finds a slow leak under the kitchen floor a month after closing. Below is what the rules say, how to organize your records, and when small claims court or an attorney fits.

What California Law Requires Sellers to Disclose

The rules sit in California Civil Code Section 1102 and the sections after it. According to the text of Civil Code 1102 to 1102.18 posted on ca.gov, the article applies to transfers of real property "improved with or consisting of not less than one nor more than four dwelling units". The disclosures must be made on a form titled Real Estate Transfer Disclosure Statement.

The California Department of Real Estate (DRE) explains the purpose in its reference book chapter on disclosures. The seller must "deliver to prospective buyers a specified written disclosure statement concerning the condition of the property". The statement covers "matters within the personal knowledge of the seller and the agent, and matters based on a reasonably diligent inspection".

Under Section 1102.3, a sale requires delivery "as soon as practicable before transfer of title". If the statement arrives after the buyer's offer is signed, the buyer has "three days after delivery in person or five days after delivery by deposit in the mail, to terminate his or her offer". Under Section 1102.7, "'good faith' means honesty in fact in the conduct of the transaction".

Limits on the Seller's Duty

The law does not make a seller guarantee the house. The DRE's Disclosures in Real Property Transactions guide (Sixth Edition, 2005) shows the form's own statement that it is not a warranty of any kind by the seller. Section 1102.4(a) protects a seller or agent from liability for an error or omission only if it was not within their personal knowledge, was based on information timely provided by public agencies or other specified experts, and ordinary care was used in obtaining and passing it on.

Some transfers are exempt from the statement. The DRE lists examples such as a "transfer by a foreclosure sale," a "transfer from one co-owner to another," and a "transfer pursuant to a court order". The DRE also notes that "the property is sold in its present physical ('as is') condition subject to the right of the buyers to inspect and investigate," unless agreed otherwise in writing.

An "as is" sale is not a free pass, though. Section 1102.1(a) says the Legislature did not intend to change the existing obligations of the parties "to disclose any fact materially affecting the value and desirability of the property".

Buyers carry some duty too. The DRE states: "Nothing in the law relieves a buyer of the duty to exercise reasonable care to protect himself/herself". That is why inspections matter, as our story on mold missed in a home inspection shows.

Bought a House With Problems Not Disclosed? First Steps

Before you call anyone, build a clear record.

1. Document the defect. Take dated photos and video, and keep any damaged materials a contractor removes.
2. Pull your purchase file. Find the disclosure statement, inspection reports, contract, and emails.
3. Compare the paperwork to the problem. Note whether the defect was listed, left out, or described differently.
4. Look for signs of prior knowledge. Old repair invoices, permit records, or patched areas may show the problem existed before the sale.
5. Get written repair estimates and keep a log. Estimates set the dollar amount; the log records every call, with dates and names.

Small Claims Court: Limits and Rules

For smaller repair bills, small claims court may be an option. The California Courts Self-Help Guide says: "Generally, you can only sue for up to $12,500 in small claims court (or up to $6,250 if you're a business)." It also says: "You can't have a lawyer represent you."

Free help exists: small claims advisors "give free legal information in small claims cases". If your costs are near or above the limit, the Courts suggest you can talk to "a lawyer for advice or help deciding between filing a small claims or civil case," according to their guide to cases for $12,500 or less.

When to See an Attorney

Deadlines are the biggest reason to get advice early. The California Courts page on deadlines to sue lists examples such as "4 years from the date the contract was broken" for written contracts and "3 years from the date the damage occurred" for property damage. It notes that when a problem was not found right away, the clock "generally starts counting from the date the problem was discovered or should reasonably have been discovered". It also warns that these rules "can be complicated and the time limits can be hard to figure out". Claims over seller non-disclosure, such as fraud or negligent misrepresentation, can have their own deadlines, so talk to a lawyer promptly after you find the defect.

Consider an attorney when the repair costs exceed the small claims limit, when you want the sale undone, or when an agent or broker is involved. The DRE's complaint page says it investigates agents for "misleading or defrauding consumers," but it cannot order "that monies be refunded, contracts be canceled, damages be awarded". For those outcomes, "you should consult an attorney". The Courts' free or low-cost legal help page says lawyer referral services "can tell you about free or low-cost legal services in your area for people who qualify".

Frequently Asked Questions

Can I sue a seller for not disclosing problems in California?

Possibly. Section 1102.13 says a person who "willfully or negligently" fails to perform a disclosure duty is liable for the buyer's actual damages. The same section says the sale itself is not invalidated solely because of that failure.

Can a California seller sell a house "as is"?

Yes. The DRE says property is sold "as is" unless otherwise agreed in writing, subject to the buyer's right to inspect. However, Section 1102.1(a) says the law did not change the existing duty to disclose any fact materially affecting the value and desirability of the property.

How much can I ask for in small claims court?

The California Courts Self-Help Guide says you can generally sue for up to $12,500, or up to $6,250 if you are a business. A lawyer cannot represent you there.

Protect the Home You Bought

A disclosure dispute is between you and the seller, while your homeowners policy is a separate contract. At Farmers Insurance - Young Douglas, we can walk through what your policy says about damage and exclusions, and our housing advice library has more guides for California homeowners. Coverage depends on your policy. Get a free quote and coverage review with our team.

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Written by LaMonte Douglas, owner of Young Douglas Insurance, a Farmers Insurance agency serving California from Ontario. CA License #4091974.

Sources (accessed September 23, 2026): California Civil Code Sections 1102 to 1102.18 (copy posted on ca.gov); California Department of Real Estate: Reference Book, Basic Contract Provisions and Disclosures, Disclosures in Real Property Transactions, Sixth Edition, 2005, Filing a Complaint; California Courts Self-Help Guide: Small claims in California, Cases for $12,500 or less, Small claims advisors, Deadlines to sue someone, Get free or low-cost legal help.

Last updated: September 23, 2026.