Legal Question in Real Estate Law in California
We entered escrow for the sale of our residence. 7 days before close, the broker let the buyer move some things into the home. While there, the buyer caused a fire that burned part of the house. The buyer refused to close and repair the damage. The buyer says our damages are limited to liquidated damages, not the cost to repair damage (which is a lot more than the deposit). Is there a law that says liquidated damages clause in the CAR applies to torts too?
1 Answer from Attorneys
The problem with the tort claim is that you don't own the home as yet. (If I'm understanding your question right.) The liquidated damages clause will be fairly specific and should be reviewed by an attorney but they typically state "if the home doesn't close through no fault of buyer...".
I seem to recall that the CAR contract addresses damage to the home during escrow. Read your contract carefully. Also, hopefully the home has insurance still through the Seller. If so, and you're inclined to, maybe negotiating taking the insurance proceeds and remodeling is an option.
I realize your question is not simple. I'm just giving you some ideas of where to look and questions to ask to avoid litigation. I hope this helps.
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