disclosure of wood floor discoloration

What is the name of your state? California

When selling our home, we pointed out to our realtor that the color of our maple floor was lighter underneath rugs and furniture (a natural phenomenon as those parts of the floor don't age as fast as the floor that is exposed to air and light). He did not think this was an item to list in the disclosure section of the contract since the floor was not defective or damaged. Based on his expert opinion, we didn't think of it again.

Now, after closing, the buyers are suing us, our agent and his broker for the cost of refinishing the floor. Even though a portion of the floor that showed the difference in color was plainly visible, the buyers and their agent did not note it the two times they walked through and the home inspector did not note it.

The buyers are taking us to small claims court in two days, even though they signed the contract that said they would opt for arbitration should a dispute arise.

What is our liabilty?

[HomeGuru]

Originally posted by movingonincal
What is the name of your state? California

When selling our home, we pointed out to our realtor that the color of our maple floor was lighter underneath rugs and furniture (a natural phenomenon as those parts of the floor don't age as fast as the floor that is exposed to air and light). He did not think this was an item to list in the disclosure section of the contract since the floor was not defective or damaged. Based on his expert opinion, we didn't think of it again.

Now, after closing, the buyers are suing us, our agent and his broker for the cost of refinishing the floor. Even though a portion of the floor that showed the difference in color was plainly visible, the buyers and their agent did not note it the two times they walked through and the home inspector did not note it.

The buyers are taking us to small claims court in two days, even though they signed the contract that said they would opt for arbitration should a dispute arise.

What is our liabilty?

**A: the hardwood floor condition should have been noted on the TDS.
He gave you bad advice.

So if our agent gave us bad advice, is he the one that's liable?

Is it likely that a judge will "pin" it on the agent or distribute the liability between the agent, his broker and us?

Are the buyers partially liable for not taking a closer look? How about the inspector?

[HomeGuru]

Originally posted by movingonincal
So if our agent gave us bad advice, is he the one that's liable?

**A: he is partly at fault.
*********

Is it likely that a judge will "pin" it on the agent or distribute the liability between the agent, his broker and us?

**A: shared liability.
*************

Are the buyers partially liable for not taking a closer look?

**A: not if conditions are hidden, you have knowledge of and fail to disclose.
*******

How about the inspector?

**A: not liable.

Well the judge dismissed the case today because he said the proper channel for resolution was arbitration (per the contract both parties signed).

If we pay all or a portion of the cost to refinish the floor (via settlement or arbitration), is there anything we can do to prevent further claims by the buyer? I'm afraid they won't be satisfied with the refinishing and want a new floor.

[HomeGuru]

Originally posted by movingonincal
Well the judge dismissed the case today because he said the proper channel for resolution was arbitration (per the contract both parties signed).

**A: that's interesting. If there was a binding arbitration clause in your contract, did your attorney request that the case be dismissed or did he/she file a motion to compel?
*********

If we pay all or a portion of the cost to refinish the floor (via settlement or arbitration), is there anything we can do to prevent further claims by the buyer? I'm afraid they won't be satisfied with the refinishing and want a new floor.

**A: yes, by virtue of the settlement agreement language.