Legal Question in Real Estate Law in California
Builder cancels buyers after 365 days and increased costs
I signed a contract in 2/03 for a home in a new subdivision. 1/04 the seller sent a letter stating that since he was unable to complete the home within the 365 days refered to in the contract he was terminating the purchase agreement and I would be first to buy at the new revised price which I would be notified of. When buyers purchased the homes, they were forced to sign an addendum, that was not part of the approved contract by DRE, stating that if an ''event occured that resulted in the sellers sole determination an unreasonable increase in costs the seller may end the agreement''. For these two reasons the seller said he was giving me the opportunity to purchase at 30k more than purchase price.
However, 10/03 I switched lots with the buyer of another lot, everyone proceeded accordingly. When this issue of the 365 days came up, I pointed out that the addendum says all other portions of the contract remain the same that it would be impossible to complete the new lot in the same time frame as it was not yet started. Therefore the 365 days starts from 10/03. The seller has now found that he did not sign that amendment. He ignored the lis pendens and sold the property I was in escrow for. Help!
4 Answers from Attorneys
Re: Builder cancels buyers after 365 days and increased costs
Whose lis pendens? A lis pendens can only be filed and recorded when a lawsuit has already been initiated that affects title or possession of the real property. You have set forth a torrent of facts, but still not enough to allow a meaningful evaluation of your situation. I suggest you contact a lawyer, perhaps one or more of the LawGuru lawyers who respond to your posting, to give the lawyer(s) a fuller account of what happened, possibly including some documentary support. There is enough money at stake here to warrant at least a little PAID legal assistance, and your issues are not generic enough to allow a bulletin-board lawyer to counsel you without a ton of specifics.
Re: Builder cancels buyers after 365 days and increased costs
Lis Pendens?
Re: Builder cancels buyers after 365 days and increased costs
With a Lis Pendens filed against that specific property, unless that recorded document was removed, there can be no clear title. We would need to review your documentation and any court filings to advise you of your rights. Our firm handles cases throughout California.
Re: Builder cancels buyers after 365 days and increased costs
It seems odd that the property could be sold with a properly recorded lis pendens. By the way, a lawsuit must be filed before a lis pendens may be recorded. No lender on earth would lend money to a buyer for the purchase of property subject to a lis pendens. A cash buyer could make the purchase. However, the cash buyer will take subject to the lis pendens.
You can sue for specific performance and obtain a court order directing the sale of the property to you. The current buyer would be simply be out of luck.
We have several real estate cases in litigation. Give us a call if you would like our help.
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