Fox had initially sought $5 million, according to court documents obtained by the Daily Mail, but accepted $100,000 from Cynthia Pett-Dante in a compromise deal.
The 35-year-old bought the home from Pett-Dante in 2016 but soon realized that it needed at least $500,000 worth of work due to leaks, mold and other issues. Two years later, she filed the $5 million suit and complained that the home gave her "constant stress" and "chronic migraines."
Judge David Soleto sided with Pett-Dante and granted her motion for summary judgment. The manager offered the actress the $100,000 compromise deal. The deal falls under the California civil code 998, where either party can propose a settlement before the case goes to trial
Fox reportedly also sued 16 others involved in the sale, including her real estate lawyer Joseph D'Onofrio. D'Onofrio had reportedly warned Fox about the purchase and said the transaction was "nightmarish, ill-advised and risky."
The Transformers alum admitted that she did not read important emails and inspection reports regarding the issues with the property. She told the court that she pays others to read them and to give her the information and advice.
Fox reportedly said that she pushed the sale through because it was the only home in Malibu within her budget and she wanted her children to go to a new school in the area.
The actress had welcomed her youngest son, Journey, with estranged husband Brian Austin Green three months after buying the home. "I remember that the estimate came in very high. We didn't have that kind of money sitting around where I could fix it and be okay," she said of the cost of fixing the home.
"So there were a lot of discussions about me needing going back to work pretty quickly after having the baby, in case I was going to have to fix this. I don't recall exactly. It was high. I believe the first estimate was high. Upwards of $500,000," she said.
Fox said in her deposition that she started seeing a holistic doctor because she felt unwell. "I knew there was mold. I had been exposed to mold before, and I was getting chronic headaches and having the same health issues," she said. "My body metabolizes itself. I eat my own muscle proteins. I lose a lot of weight. I get very sick."
The Rogue star also had issues with a home she bought in Toluca Lake for $3.35 million in 2014. She alleged that an interior designer destroyed the home while she was away to film a movie.
"I gave him a budget to remodel the house, and I went out of town, and he spent the entire budget over the course of how long I was gone filming, and the house had just been taken down to studs and there was no house, and the budget was gone," Fox explained. The Toluca Lake home was said to be sold for $2.6 million.
Fox lives with her three children in a $15,000-a-month rental home in Calabasas.