Lawsuit highlights homebuyer risk faced when buying a flipped house in California.
LOS ANGELES, Feb. 9, 2026 /PRNewswire-PRWeb/ -- According to a complaint filed June 26, 2025, in Los Angeles County Superior Court, a South Bay couple allege they incurred substantial repair costs after discovering renovation and permitting issues in a Torrance home they purchased in July 2023. The lawsuit alleges the homeowners ultimately spent more than $80,000 to address issues that rendered portions of the home uninhabitable.
According to the lawsuit, the plaintiffs purchased their residence from Staged And Sold, Inc., a California real estate investment company owned by Victoria Schmidt, who acquired the property in April 2023 and renovated it prior to resale just 3 months later. The home was sold to the plaintiffs in July 2023 by real estate agent Kathryn Germaine Reid from Forward Management, DBA Keller Williams Pacific Estates, who had previously partnered with Staged And Sold to sell flipped homes.
The complaint alleges that the seller's renovations included the installation of new windows and a patio door by JJ Windows & Doors, Inc., a California company owned by Jose De Jesus Velazquez Lomelit. According to the lawsuit, after the close of escrow, the plaintiffs discovered water intrusion and leakage involving the windows and patio door, resulting in damage to flooring, subflooring, and interior areas of the home. The complaint further alleges that the windows and doors were improperly installed and not in compliance with applicable building codes, and that the City of Torrance had issued a notice of violation for unpermitted work to the seller, which was not resolved or disclosed before the sale.
According to the complaint, the plaintiffs pursued warranty claims and repair efforts with Staged and Sold, Inc. and JJ Windows & Doors, Inc. for several months. The lawsuit alleges those efforts failed to resolve the issues and ultimately required the plaintiffs to replace all seller-installed windows, patio door and flooring, and make other repairs at their own expense.
The lawsuit asserts cause of action against Staged and Sold, Inc., JJ Windows & Doors, Inc. and Forward Management, DBA Keller Williams Pacific Estates, including breach of contract, concealment, and negligence, and seeks damages exceeding $80,000, along with attorney fees, costs, and other relief.
The case, number 25STCV18617, is pending in the Superior Court of the State of California, County of Los Angeles. The allegations have not been adjudicated, and the defendants are entitled to present defenses.
Media Contact
Zachary Schorr, Schorr Law, 1 1 866-718-4240, [email protected], https://schorr-law.com/
SOURCE Schorr Law
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