Legal Question in Real Estate Law in California

Re: Home purchace

If you have recourse via the courts, it could flow from a case for fraud or for breach of contract, at least in abstract theory.

The contract theory seems impossible as a practical matter; nothing the salesman said (orally) is going to be a contract term. Real-estate sales contracts need to be in writing as a matter of law. Further, the contract itself probably contains clauses specifically excluding anything outside the four corners of the document and its exhibits, and also disavowing oral representations and prior negotiations. Read your contract, trying to think as a juror might, and see for yourself.

I'd give fraud a slightly better chance, maybe 5% instead of 1%, but proving all the elements of fraud is going to be tough. Among other things, you would have to prove that the salesman knew at the time he made his representations about future pricing that he knew those representations were false, that he intended you to rely upon them, that you did in fact rely upon the representations, and that doing so was objectively reasonable on your part.

A basic problem here is that the market for new homes is cratering, and any price prediction, however honest or crooked, made two months ago is likely to be out-of-date as soon as made. Jurors know this and are unlikely to make all the findings you'd need to establish fraud.

Re: Home purchace

If you have recourse via the courts, it could flow from a case for fraud or for breach of contract, at least in abstract theory.

The contract theory seems impossible as a practical matter; nothing the salesman said (orally) is going to be a contract term. Real-estate sales contracts need to be in writing as a matter of law. Further, the contract itself probably contains clauses specifically excluding anything outside the four corners of the document and its exhibits, and also disavowing oral representations and prior negotiations. Read your contract, trying to think as a juror might, and see for yourself.

I'd give fraud a slightly better chance, maybe 5% instead of 1%, but proving all the elements of fraud is going to be tough. Among other things, you would have to prove that the salesman knew at the time he made his representations about future pricing that he knew those representations were false, that he intended you to rely upon them, that you did in fact rely upon the representations, and that doing so was objectively reasonable on your part.

A basic problem here is that the market for new homes is cratering, and any price prediction, however honest or crooked, made two months ago is likely to be out-of-date as soon as made. Jurors know this and are unlikely to make all the findings you'd need to establish fraud.

Re: Home purchace

If your negotiating strategy for the purchase of big-ticket items like homes and autos is simply to pay the asking price, this represents a huge leak in your budget; and you need to take a course in how to negotiate.

Re: Home purchace

The answer depends upon the documents you signed at the time of your purchase. Several things would weigh against your ability to pursue the builder. First, most purchase agreements are "integrated" - in other words, they specifically state that the written purchase agreement contains all of the terms of the purchase, and that buyer may not rely upon any oral representations - i.e., the salesperson's statement about prices going up. You should have gotten the statement in writing. Second, most new home purchase agreements I have ever reviewed specifically state that the seller reserves the right to adjust prices on future home sales to whatever level the seller deems appropriate. Finally, the subsequent sales, though they affect the future value of your home, have absolutely nothing to do with your purchase. Each home sale stands on its own as a negotiated purchase. You simply agreed to pay more than the next buyer. You can review the documentation with an attorney, but I wouldn't spend too much time or money pursuing this unless an attorney reviewing the documents sees a hole that might open the door to some recourse.

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