California Real Estate Law — Frequently Asked Questions

How long do I have to sue a seller who failed to disclose defects?

It depends on the legal claim. Some claims must be brought within two or three years of discovering the problem, and claims based on a written contract generally within four years. The clock can start running sooner than you think, and evidence disappears fast — so talk to an attorney as soon as you discover a problem.

What is the Transfer Disclosure Statement (TDS)?

The TDS is a form California law requires most residential sellers to complete, disclosing known material defects — anything that would affect the home's value or a reasonable buyer's decision. California Civil Code § 1102. If a seller knew about a problem and left it off the TDS, the buyer may have a claim.

Can I get my earnest money deposit back if I cancel?

Generally yes, if you cancel within your inspection, appraisal, or loan contingency periods. After contingencies are removed it gets harder, but a liquidated damages clause typically caps what an owner-occupied home seller can keep at 3% of the purchase price. See our earnest money disputes page for more.

How much does mediation cost compared to a lawsuit?

Mediation usually costs a fraction of litigation and can resolve a dispute in a single day, while a lawsuit can take a year or more. Most California real estate contracts also require the parties to attempt mediation first to preserve their right to attorney fees.

Should an attorney review my purchase agreement before I sign?

If anything about the deal worries you — the disclosures, the agent's advice, an unusual term — a one-hour review before you sign is far cheaper than a lawsuit after you close. Jimmy is both an attorney and a licensed broker, so he reviews contracts from both perspectives.

The information on this page is general information only, not legal advice, and does not create an attorney-client relationship. Every situation is different — call 408.645.0606 or email jimmy@lawjn.com for a complimentary phone consultation about your specific facts.