Legal Question in Real Estate Law in California

home purchase contract

What recourse does a buyer have when dealing with a greedy, unreasonable seller? I have a contract to purchase a house, contingent on inspections. The inspection revealed that the downstairs bathroom wall needs to be taken down, with new sheet rock and dry wall put up. Not to mention finding the source of the water damage, which has caused the bathroom ceiling to cave from the pressure of the water in one area. Also, the appraisal came back over 350 sq feet less than was advertised. I asked the seller for 3K off purchase price plus the kitchen fridge and trailer (for the boat which comes with the house.) The seller is refusing to accomodate these demands, claiming he can get the repair work done for 2500. Do I have rights here? If he forces me to walk, I lose my loan app money, appraisal and inspection fee costs. How is this fair if I am being blocked by a seller who is nickel and diming my reasonableness? Any legal recourse? Could I make him pay for those costs if he is being unreasonable? Is the sq footage issue misrepresentation? I think a difference of 350 sq feet (1870 to 1520) merits a price reduction in itself, never mind the water damage. Any suggestions/thoughts are greatly appreciated.


Asked on 10/05/07, 8:57 pm

1 Answer from Attorneys
George Shers Law Offices of Georges H. Shers

Re: home purchase contract

You probably have no recourse as to getting a reduction in the price of the house. The defects you discovered allows you to cancel the deal, but that is all a buyer can do in the marketplace. Only the government has the power to force someone to sell something for a price they are not willing to accept.

The theory that you could sue him for intentionally misrepresenting the problems with his knowing you would lose the loan fee, etc., is rather novel, but you might be able to convince a small claims court judge and then slap a lien on his house and thus get a price reduction, except by the time was done your loan will have disappeared. The damages you have suffered would not justify suing in Superior court for fraud.

Unfortunately the only thing you can do is gamble on a small claims court victory [which is limited to $7,500].

Read more
Answered on 10/05/07, 9:46 pm


Related Questions & Answers

More Real Estate and Real Property questions and answers in California