Legal Question in Real Estate Law in California

I signed a residential purchase agreement for a home that was listed by a realtor licensed through a broker that is a very common name in California . Escrow was opened after the contract was executed by the seller, and I deposited an earnest money deposit of $5,000 within the timeframe required under the contract into the broker's escrow account. Less than a week later the listing agent calls my agent to let us know that the person who executed the does not hold the actual title to the house and that the deal is not valid and that I can come get my earnest money deposit back from escrow. I want the house, and do not want to back out of the agreement or take my money back. What are my options?


Asked on 3/07/15, 11:02 pm

1 Answer from Attorneys

The first thing to do is find out if what you are being told is true, that the seller does not have title. If that is true, then there is no way you can legally get the house unless there is some connection between the purported seller and the true owner that would bind the true owner to the contract. That evaluation is WAY too complicated to do via an internet Q&A forum. Assuming you can't tie the owner to the contract, then your only remedy is to get your earnest money back and sue the purported seller for breach of contract and possibly fraud, and hope they have the money to satisfy whatever judgment you may get.

Read more
Answered on 3/09/15, 2:09 pm


Related Questions & Answers

More Real Estate and Real Property questions and answers in California