California Real Estate Broker ExaminationContractsHard
A seller and buyer are nearing the close of escrow. The buyer discovers a significant defect in the property's roof that was not disclosed in the Transfer Disclosure Statement (TDS). The buyer wants to sue for damages. What is the typical statute of limitations for a buyer to bring a legal action for breach of a written contract, such as a purchase agreement, in California?
- AFour years
- BTwo years
- CThree years
- DOne year
Show answer & explanationAnswer & explanation
Correct answer: A. Four years
In California, the statute of limitations for breach of a written contract is generally four years. For fraud or misrepresentation, it's typically three years from discovery.
Why the other options are wrong
- B. Two years is common for breach of oral contract or personal injury.
- C. Three years is the statute of limitations for fraud or discovery of damage to property, but for breach of written contract, it's longer.
- D. One year is common for libel/slander or personal injury.
Statute of Limitations (Written Contract)
The legal time limit within which a lawsuit for breach of a written contract must be filed.
- Varies by jurisdiction and type of contract
- In California, generally 4 years for written contracts
- Begins from the date of breach
Memory trick: Written contract: 'Four years to fight, or forfeit your right!'