Legal Question in Real Estate Law in California

Fruadulant Contract??

On Nov 5 I entered into a contract to sell my home.

On Nov 18 I received formal notification that the buyer was electing out of the contract. (no reasons and no change in circumstance). I understand that the buyer has a grace period but don't sellers have rights as well? It seems one-sided...

On Nov. 19 I received notification that the buyers earnest money check had bounced. This further surprised me.

Here's my question....

It seems to me that the bounced check denotes that the buyer never had an intention to purchase my home. I'm concern that he fraudulantly entered into a contract.

I did not receive notice from escrow that the check had bounced until 24 hours after I refused to sign the escrow release. Wouldn't common sense and due diligence require that I be notified of the earnest money deficiancy immediately.

Meanwhile, I've accepted a new job out of state. I'm off to a new state and am desperately attempting alternate financing so that I can close on an offer that I had placed for a new home. (AT MUCH COST).

Is CA law really this skewed to the buyer?

Thanks


Asked on 11/20/04, 9:56 am

2 Answers from Attorneys
Larry Rothman Larry Rothman & Associates

Re: Fruadulant Contract??

Depending on the language of the agreement and any contingencies, you may be able to sue the buyer for benefit of your bargin. We will need to review your documents and contracts to see if you have a case. Did you resell the house?

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Answered on 11/30/04, 10:21 am
Christopher M. Brainard, Esq. C. M. Brainard & Associates - (310) 266-4115

Re: Fruadulant Contract??

Were all contingencies removed?

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Answered on 11/20/04, 2:10 pm


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