Legal Question in Real Estate Law in California
Cough It Up
Situation:
1. Buyer made $2000.00 dollar deposit made out to Title company on home. Buyer defaulted on contract. Buyer went to small claims court to recover $2000.00 from seller and lost. Title company was not party to small claims action.
When the case was presented to judge, he was informed that the Title Company had the funds but the judgement did not direct the title company to provide funds to seller(Defendant). A Counter Suit was not filed since seller(Defendant) was advised that a judgement againts the buyer (Plaintiff) would constitute a win for the Seller (Defendant).
Problem:
1. Title Company will not release funds to seller without a signature of release of buyer.
2. Buyer will not sign and wants to continue negotiation.
3. Seller does not want to negotiate and wants the entire deposit.
Questions:
1. Is this a simple matter of having court modify the judgement? and if so how is this done, or
2. Does the seller have to file another small claims action against the buyer and the Title Company to get the buyers deposit? and
3. Can seller get punitive damages?
3 Answers from Attorneys
Re: Cough It Up
If sending the Judgement to the Title Company with notice they will be responsible for damages if they do not pay, then file another case against Title company only asking for an order directing them to pay and ask for damages for them refusing to recognize first order.
JOEL SELIK
www.SelikLaw.Com
Re: Cough It Up
Generally, the title company should have been joined as a defendant in the case. A judgment against the buyer is not an order against the title company.
However, the buyer is in contempt of court by not signing the document. Furthermore, there is also a statute that calls for a $600 penalty if a party does not sign release documents without just cause.
You can try going to the court to get an order directing the title company to release funds. If they will not do that, then file suit against the title company and the buyer, and seek the $600 from the buyer, on top of costs and the $2000.
Re: Cough It Up
I agree with Mr. Koenen. The problem with having the court modify the judgment is that if the title company was not a party (co-defendant) to the original suit, the small claims court probably lacks personal jurisdiction over the title company and thus cannot order them to do anything.
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