Legal Question in Real Estate Law in California

Re: Buyer performs contract work before close of escrow

Surprise, an all-digital broker is sweating is backside off. First of all yes, depending upon what was written and how you interpreted if all of the potential buyer was allowed to do was move some boxes in as you put it remodeling is not within that definition. The don't worry about it unless the escrow doesn't close. I take it that there is no other potential buyer and that you are willing to allow some extra time for the escrow to close as long as you can sell the property. Now you can put some pressure on the buyer because if he didn't start remodeling work without ownership or authority he'd better get his loan together so the escrow can close as soon as possible. Use this situation to your advantage rather than look for a lawsuit. More importantly get a real estate attorney in your area to aid you. But rather than waste time in getting numbers of answers over the net selected attorney who can help you, get a game plan together with that both you and the attorney approve of, understand your rights and go forward to solve the problem and get the property sold. I've been practicing law in the San Francisco Bay Area for over 30 years in can help you in this situation. If you wish to contact me I am at 925 -- 945 -- 6000.

Re: Buyer performs contract work before close of escrow

The buyer, after removal of contingencies but prior to close of escrow, has equitable title, which includes certain rights, but not the right of possession. The buyer could probably enter the property without committing a trespass to correct a dangerous situation or prevent loss of the property, but I think that to do alterations before delivery of the fully-executed deed is a trespass.

As a practical matter, I would notify the buyer that this jumping-the-gun is an impermissible invasion of your property rights, then hope that escrow eventually closes and you get paid. I think that is preferable to threatening or filing suit. However, I would not ignore it.

As to the broker's liability, he/she may or may not be liable to you as well, depending upon whether a judge or jury would find a sufficient neglect of duties, but if a suit is necessary the attorney should add the broker as a co-defendant to give the trier of fact opportunity to decide.

Re: Buyer performs contract work before close of escrow

As long as escrow closes now within days as you believe will happen, no apparent loss from info provided, however, if not, you should pursue matters. Call attorney to discuss and review.

Re: Buyer performs contract work before close of escrow

As an afterthought to my previous answer, you also need to be concerned about your potential liability to the buyer's contractor(s) and suppliers. They will have mechanic's liens on the property.

You might want to post and record a notice of non-responsibility on the property. See California Civil Code section 3094. The form itself can be found on various Web sites by using a search engine.

You might also ask your escrow agent and your broker for assistance in making sure that upon close of escrow there is no liability upon you.