Legal Question in Real Estate Law in California
I bought my first house, a 1 bedroom condo in July of 2007 in San Francisco. My agent insisted that I bid above the asking price because "it is what you have to do in San Francisco and no one likes to negotiate the price". With a lot of reluctance I accepted her guidance thinking that she was the expert. She said there were multiple offers coming in and that it was important my offer was "the best" including making it a contingency free offer. Turns out my offer was the only one.
Also, the mortgage broker got rates that were not very competitive based on the market average at the time (6.5% for a 7 yr ARM).
Data shows that agents and other folks in the business knew about the decline in the market in July of 2007. I was wondering if I have a case against the agent or mortgage broker for not representing my best interests and the resulting situation I find myself in now like so many others of being underwater on the mortgage and unable to re-finance, etc.
I would like to make a demand that the agent's company either buy the house back from me for the price I paid and any additional costs incurred as a result of the original transaction, or that they list and sell the property and make me whole on the original amount I paid.
Thank you for any help you can provide.
3 Answers from Attorneys
I doubt you have a case against your broker, considering prices in your zipcode continued to appreciate for more than a year after you bought and did not drop below the 7/07 price level until nearly the end of 2008. As for your mortgage broker, you would have to prove that you could have qualified for a better rate and that the broker negligently failed to get it for you, and the difference would have to mean enough in dollars to be worth the cost of suing them. Not very likely.
The price trends Mr. McCormick mentions may be unique to 94117; prices began to slide most everyplace else in fall 2007. I agree with the rest of his analysis and would add that while your own broker owes you a very high duty of care under the broker/principal fiduciary relationship rules and standards, the measure of damages even if found liable would give you a judgment, at best, of only the difference between what you paid and what the property was really worth at the moment you went into contract.
A brief addendum........condominium prices peaked in Sonoma County in September or October 2005, depending upin whether you look at median or average selling price. (median, September, average, October.)
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
