Legal Question in Real Estate Law in California
dramatic cc&r changes of a develepment
We purchased property marketed in a sub division as 55 custom home lots. The new sub division was compared to 2 other large custom developments in town. Both developments took 3 to 4 years before all the lots were sold, this was during a hot real estate trend and special incentives were given to contractors to start spec homes to generate interest in the development. Less than 17 months after starting to sell lots in our development and less than a year after we purchased the property and 6 months into building our custom home, the remaining 41 lots are now tract homes of a significant lesser value. The real estate agent told us that no tract homes would be allowed within the 55 custom lots. Our home was appraised at 725,000.00, the tract home next door that is now being built was purchased for 325,000.00, across the street the one being built was sold for 295,000.00. Our lot was purchased for 220,000.00. What is a reasonable time frame for the developer to deem a project '' impossible'' and move forward and change the cc&r's? Have they committed fraud? Can they be held accountable for the dramatic fall of our property value. The company that sold us the lot is the same company selling and building the tract homes.
4 Answers from Attorneys
Re: dramatic cc&r changes of a develepment
Without reading all the documents, especially the promotional lierature and the cc&rs as well as any subdivision permits issued by (Fresno? county) or the state Department of Real Estate, I'd hesitate to say "fraud" and "actionable violation of cc&rs" for sure, but there is a stench about the developer's actions and I have a strong hunch that you, and other early buyers in similar straits, have two or three solid causes of action. There is no law against resucing lot prices to meet market conditions, but altering a promised overall development plan is another matter.
Re: dramatic cc&r changes of a develepment
You may have an action for intentional or negligent misrepresentation. Contact me directly.
Re: dramatic cc&r changes of a develepment
Without examining the CC&R's in existence at the time you bought, one cannot answer the questions you ask. In matters like this, it becomes evident why "an ounce of prevention is equal to a pound of cure" became cliche. Why people don't routinely consult lawyers in real estate transactions in CA before they buy or sell is beyond my understading.
Re: dramatic cc&r changes of a develepment
I have recently seen something very similar to what you are describing. You need to have a lawyer review all of the documentation connected with the purchase of your residence. However, generally your builder is not going to be responsible for market conditions that have reduced the home values in your neighborhood. Unfortunately, this is a fact of life in today�s real estate market.
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