Just when it seemed like Kyle Richards and Mauricio Umansky were easing back into the public’s good graces following their headline-grabbing separation, a new scandal is erupting—this time, not about romance, but about a multimillion-dollar real estate transaction that’s now at the center of serious legal scrutiny.
According to insider sources within the Los Angeles luxury real estate circle, Kyle and Mauricio are being accused of “failing to disclose known structural issues” in the sale of a high-end Encino mansion, which fetched nearly $7 million in late 2021. The buyer, a well-known real estate investor, reportedly discovered a series of serious problems shortly after moving in—ranging from major foundational cracks to a faulty drainage system and suspicious patchwork repairs that raised red flags.
What’s particularly damning is that in the legally required disclosure documents signed by both Kyle and Mauricio, there was no mention of any structural issues whatsoever. An independent engineering report commissioned by the buyer estimates the cost of repairs at a staggering $1.8 million, not including potential losses from delays in renting or reselling the property.
Mauricio, founder of the elite brokerage firm The Agency and a longtime face of luxury real estate in Los Angeles, has built a career on claiming “transparency and trust” in every deal. However, this isn’t the first time his name has been associated with shady real estate practices. In 2019, he was hit with a $4.5 million lawsuit over another allegedly under-disclosed Malibu mansion sale. Though that case was quietly settled out of court, the damage to his reputation lingered.
“This wasn’t something you could’ve missed,” a structural consultant close to the current case told DeuxMoi. “Cracks like that don’t just appear overnight. If you lived there, you saw them.”
Legal experts now suggest that if it can be proven the couple knowingly failed to disclose the home’s true condition, they could face serious civil penalties under California real estate law. And because Kyle was listed as a co-owner and signed the final sale paperwork, her involvement could also be called into question—despite Mauricio being the one directly managing the deal.
Insiders claim that Kyle may not have known the full extent of the home’s issues and that Mauricio handled most of the sale as the “real estate expert” in the relationship. Still, as one legal analyst put it: “In real estate, ignorance is not an excuse—especially when nearly $2 million in damages are involved.”
With Kyle already under scrutiny for her relationship with country singer Morgan Wade and growing distance from the RHOBH cast, this new scandal is raising uncomfortable questions. Is the polished image of Beverly Hills’ most “stable and elegant” Housewife beginning to crack under pressure? Meanwhile, Bravo has declined to officially comment on the allegations, but sources close to production say the situation “may become part of RHOBH’s upcoming season storyline—if Kyle allows cameras to follow it.”
For the average RHOBH viewer, life inside a golden Encino mansion may still look like a dream. But for the buyer who’s now drowning in unexpected repairs and financial damage, it’s more like a nightmare hidden beneath a designer floorboard—one that Kyle and Mauricio allegedly never warned them about.