Legal Question in Real Estate Law in California

Re: Change of asking price after contract

You know I would've said it seems that I would have to read all documents before I could advise you until you placed the tagline on your question. This cannot be definite advice. My best advice is of course have an attorney personally review these documents immediately. The attorney should be well schooled in real estate law as well as business law. If though the document contains the right of modification or pulling out of the agreement at any time, without notice that may be the straw that breaks the camels back. I cannot imagine that you can do such a thing without notice to the other party or allowing them some rights in the property. You placed her good faith deposit down and it can be argued that back clause is an adhesion clause to the contract which should not nor can it have the effect it seems to give. I am troubled by your contract of the question becomes economically what are your damages and in the alternative what is the cost of litigation in the situation. I must assume that the developer is not going to be cooperative in your situation. Realizes the developer had problems. That seems to me to be obvious is that is why there was a delay in instruction even commencing and probably other time line events which probably were not started timely or even at all. He could've had substantial problems with his financing, contractors and/or development plans. Something happened in that situation the value of the properties potentially could've raised so he is trying now to recoup because of the time he lost, the extra expense to him because of problems he encountered, etc. to be very interesting to know what he did with your $2000 deposit. What the contract allowed into do vs. what the law allows them to do with it. Minimally, that deposit should be returned you with interest but that's nothing compared to your real damages in this kind of situation. I am in Northern California and you're in Southern California and with all due respect all the law of the state is the same things are done quite differently in your neck of the woods. I been practicing for 30 years in both areas but most of the San Francisco Bay Area and I am much happier with the court system in this area. Good luck to you because I think based upon your question you're getting screwed.

Re: Change of asking price after contract

A "contract" from which either party can withdraw at any time without liability isn't binding, and is called an "illusory contract." It looks like a contract, but isn't.

Therefore, I would conclude that you have no rights under the contract per se.

Nevertheless, the story doesn't end there. You may have a case against the builder on some other legal theory, including fraud. The difficulty in getting a judgment based on fraud will be that the builder can argue that he disclosed everything, that there was no deception if you read the supposed "contract" you would see that it promised nothing.

I think this will be a tough one to win, but you might want to take your "contract" and your story to several lawyers in your area and see if anyone will take your case on a contingency basis or for a fee you can afford in a potentially losing battle.

Re: Change of asking price after contract

You need to have an attorney read your contract as soon as possible. It seems to me like you have been taken advantage of, but its hard to say whether or not you have a claim until someone reviews your contract. Please feel free to contact us if we can be of assistance.