Leonard

I. BACKGROUND2

Leonard is the trustee of a trust that owns the Property. Two residences are on the Property, one known as the “Main House” and another known as the “Back House.” The Arudas own and live on adjacent property at 480 McAuley Street. In May 2012, Leonard listed the Property for sale. On about June 25, he entered into a contract to sell the Property to Joanna Wulbert for $530,000. Nicole Aruda then e- mailed Leonard’s realtor: “Please consider this formal notice that the [Back House] is currently encroaching on the neighboring properties to the west and north of it. Further, the [Back House] does not meet building and/or fire codes and further was built without City of Oakland building permits. As such it is not a legal structure. [¶] As owner of 480 McAuley Street, I reserve the right to pursue any remedy available to me should the use of the [Back House] in any way infringe or endanger my property. [¶] California law requires that these facts be disclosed to any and all future buyers of [the Property].” The e-mail was forwarded to Wulbert, who withdrew from the purchase contract. Leonard subsequently had the Property surveyed and discovered that the rain gutters…