Disclosure

• Confirm that the buyer or seller failed to disclose a defect that has been subsequently discovered since the purchase of the property. Review the Real Estate Transfer Disclosure Statement, the Natural Hazard Disclosure Statement and any other written disclosure statements provided by the seller. In California, the seller must disclose information about the condition of appliances, malfunctions or structural conditions that may affect the property, the existence of fault lines near the property, controlled substance contamination to the property, the presence of lead-based paint, special tax assessments, deaths that occurred on the property and the buyer's right to check a sex offender database maintained by law enforcement. If the seller or real estate agent disclosed the defect, the buyer has been informed as required by law.
  
  

Consultation with Attorney

• If a seller and the broker did not disclose a defect, the buyer can sue the seller and the real estate agent. Locate an attorney who specializes in real estate transactions in the area where the property is located. Provide the attorney with the disclosure statements provided by the seller and the seller's agent. The attorney will determine if you have a legal basis for filing a lawsuit.
  
  

Recession

• A buyer may be entitled to a recession when the seller and the agent do not disclose a defect. Rescinding a contract means that the contract is invalidated and the property will be returned to the seller. The buyer will no longer own the property.
  
  

Damages

• If a buyer prevails in a lawsuit, the buyer may be able to recover damages. A buyer may be entitled to punitive damages, the difference between the amount paid and the actual value of the property and any costs incurred from repairing the property. The buyer may also recover attorneys' fees.