Just because some homes in a particular neighborhood have foundation problems does not necessarily mean that all homes in the neighborhood will have foundation problems. Foundation problems (and related wall cracks) can be caused by a dozen or more different things, including, but not limited to, improper soil compaction, improper drainage, improperly installed or lack of moisture barriers, improper foundation installation, improper foundation concrete mix, improper design…. (the list goes on and on).
If a seller is aware of foundation problems (or any other problem for that matter), they must, by law, disclose those issues to a prospective buyer, but there is no requirement (that i’m aware of) to disclose those problems in the listing. If there are material defects which have been the subject of litigation, that litigation must also be disclosed.
These kinds of latent defects are now covered under Civil Code §896 & 897 for homes purchased by binding conract on or after 1/1/03. The statute of limitations for foundation issues is generally 10 years from original purchase from the builder (as it was under prior law also). The statute is shorter for some other components.
