Dhillon

I. FACTUAL AND PROCEDURAL BACKGROUND

Between 1989 and 1991, the Tersinis built a 20-unit complex, now known as Century Plaza Condominiums (Century Plaza), on a one-acre parcel on Moorpark Avenue in San Jose, California. Century Plaza consists of four separate two-story buildings with individual units on each floor. The units were constructed with sound attenuation features including concrete flooring in the upstairs units, along with resilient channel ceilings. Upon completion, the units were initially rented out as apartments. As rentals, the units had tile flooring in the entryways, and linoleum flooring in the kitchens and bathrooms. The living room, dining room and bedrooms were all carpeted. In 2006, the Tersinis decided to sell the units as condominiums and terminated the existing leases. All of the units were renovated and the linoleum flooring in the kitchens and bathrooms was replaced with tile. Prospective purchasers were offered a range of upgraded carpeting or hardwood flooring in the living room, dining room and bedrooms. In February 2007, the Dhillons stopped by Century Plaza and met with Riccardi, a licensed real estate agent.4 After viewing several units, they…