Legal Question in Civil Litigation in California
We have a few major non-disclosure issues around the property we purchased last year. Among these, at least three of them amount to Intentional misrepresentation / Fraud on the part of the sellers and their real estate agent. (This includes not disclosing litigations that concern the property in the disclosure forms even though there is a written proof that they were well aware of them.)
We want to bring the sellers and the seller�s agent to mediation to resolve these issues. Since mediation is an optional method of resolution, we understand the sellers and the seller�s agent have the choice of completely ignoring our request for mediation. We do not have the funds to go through an expensive litigation process.
We wondered if involving the District Attorney�s office is likely to galvanize the sellers and their agent into action and ensure that they respond to our demand for mediation.
Questions:
- Is intentional fraud a criminal act?
- If it is a criminal act, then is it possible to approach the DA�s office with these issues and ask them for their help in contacting the sellers and the agent?
- Can you please enlighten us on how we can go about contacting the DA�s office?
- Any other advice on this would be greatly appreciated.
Thanks in advance
1 Answer from Attorneys
Fraud is both a civil and criminal act of misconduct. The D.A.'s Office may have a divison or attorney who deals with real property fraud. Contact the local D.A. and see. In all likelihood, they will tell you that they have too many cases to handle or you matter is not serious enough for them to do anything about. If you try to use the threat of reporting them to the DA unless they agree to mediation, that could be considered balckmail/extortion. You can also report the broker to the California Depart. of Real Estate but the same problems exist there as with the DA and the only thing they can do is remove the broker's real estate license.
I believe you must file a formal suit within one year of discovering the fraud or when a reasonable person would have discovered it. The sale's agreement probably has an arbitration clause in it. In mediation, neither side is forced to do anything and only if the parties make an agreement both sides accept is anything binding. If they are crooks what makes you think they will act honorably in mediation? Arbitartion, on the other hand, is binding [an enforceable agreement is made] if the parties agree; it is a mini-trial of the case but, as with mediation, the hearer of the matter will charge an hourly fee, probably on the order of $300-400 and a decision issues. Your purchase contract probably makes it a binding arbitration. I do not know if any attorneys would tqake such a matter on a contigency basis; the better your case the more likely an attorney would take it on a non-hourly basis, but also the more likely an hourly rate will result in a greater net recovery to you.