Question: In the SPDS the seller disclosed that a defective
water heater had caused flooding in the home, and that the defective
water heater had been replaced with a new water heater. After
the inspection period and just prior to close of escrow the buyer
discovers that the seller had also replaced the carpeting in the
home because of the flooding. The buyer wants to cancel the contract.
Can the buyer cancel the contract because the seller did not disclose
that the carpeting had been replaced?
Answer: Probably not. Although the seller did not disclose
that the carpeting had been replaced, the seller did disclose
that there had been flooding in the home. If the buyer was concerned
about the extent of the damage to the home because of the flooding,
the buyer should have conducted a more thorough investigation
during the inspection period.
