Property damage... Who's responsibility?

[brp rider]

Recently purchased a house (in california) built in the 60's. The house sits on top of a hill, with the back property line touching a 20+ degree slope. The slope is owned by the city. The previous owner had the back slope wash out on him during a rainstorm three years ago. It took appx 3ft of the back yard. He rebuilt the back 3 ft and added 4 retaining walls on the city's slope. There was no permit issued. I learned this after taking ownership of the house, though I could see the retaining walls prior to purchase.

The recent rains have cause the retraining walls to fail miserably and take app 6ft of the backyard down the slope. Neighbors are having the same problem (though not nearly as bad) and say it's been going on since the homes were built.

1. The city claims 0 liability and will not help to keep the hill from it's continued slide nor repair the damage. They claim that since the hill was not touched by them in any way, that they bear no responsibility for it's failure. They also say that they have been dealing with this since at least 72 and that this has been their policy the entire time.

2. The previous owner did not disclose the problem in our paperwork.

Am I stuck with what will probably be a 20k (I've been making phone calls) repair on property that I've owned for less than a year?

Thanks.

BRP Rider.

 

[HomeGuru]

You have an action against the City and one against the Seller. What does your Realtor have to say?

 

[brp rider]

Thanks.

Our realtor is clueless. I left her a message about the slide and the problem. She left me a message to the effect of "you should check your homeowners insurance".

BRP Rider

 

[HomeGuru]

And you have a claim against your Realtor also.

 

[brp rider]

I don't mean to seem un-grateful, but could you be a little more specific? I think I can understand the city as it's their property. I think I can understand the previous owner because it was undisclosed. The realtor tho? An action for being clueless?

Thanks,

BRP RIder

 

[HomeGuru]

Ok, let's talk about your Realtor. In addition to clueless and cop-out, I would add in negligent, ignorant, unethical practices, breach of fiduciary duties, misrepresentation....
You see, your Realtor had a duty to inform you of ALL the obtainable facts and demand that you complete your due diligence. Part of this would include completing a public record investigation to include but not be limited to a building permit search. If this was completed prior to closing, you would have known for a fact that the 4 retaining walls were not permitted and therefore illegal. In addition and in concert with that knowledge, a review of the Seller property condition disclosure statement would have raised several red flags. These would include: why were the retaining walls built, was it due to one washout occurance or several, what were the dates of each and every occurance, were the neighbor's property affected, how much dirt was washed out and how much was fill, did a surveyor survey the property to insure that the walls were built on the correct location of the boundary property line, did a soils/geotechnical and/or civil engineer inspect the property subject area and make recommendations, did any of the named engineers draw plans, write specs and/or supervise the construction of the walls, did property licensed and experienced wall contractors build the walls, was the soil tested prior to wall construction, was the fill soil tested to insure property compaction, was the wall built to code notwithstanding no building permit issued, is the wall footing, drainage weep holes, reinforcement, bond beams etc. in compliance with generally acceptable engineering practices...... Also since the Seller had requisite knowledge, the red flags would have required you to ask more questions of the Seller.
Did the Realtor talk to any neighbors, to the City etc. and/or advise you to talk to the City, the neighbors etc.
Lastly, there is a common and relevant case titled Easton v. Strassburger with respect to Seller disclosure and agent liability. Do a search on this website using those search words as well as home inspection, roof leaking, basement leaking, seller disclosure.
So the next time your Realtor tells you to check with your homeowners insurance, tell her to check with her errors and ommissions insurance carrier.
If you need further reading go to http://www.realtor.com and click the the NAR National Association of Realtors link and search the Code of Ethics.

 

[brp rider]

Thanks for taking the time to write all that up. I managed to find some good information using the case and keywords. Do you know if there are equivilant cases with respect to the city and seller?

FYI, from what I read the realtor does not have a responsibility to do anything with respect to permits. Also, I couldn't find anything on this site and ended up searching google or the info. Not bitchn', just lettin you know.

Thanks again,

BRP Rider

 

[HomeGuru]

Yes, there are cases.