Legal Question in Real Estate Law in California
lease option one day late to close
we were one day late on closing on a lease option filed asuit against the owners for specific performance this has been going on since febuary the owners filed a unlawful detainer they wont us out however when we went to court for the unlawful detainer they won but there attorney presented us with a settlement offer if we drop or law suit they will sale us the house for 210,00 instead of the agreed amount of 165,000 we still have the loan open for the 165,000 an were thinking about excepting the offer or loan broker is doing the loan over the most we can get is 190,000 they wont us to close by may the 17th and pay all cost to close the deal however we received a notice to be out by may 6 I have a business in the home and around 18,000 in repairs and up grades in the home now if we have to we will move we would like to know how do we stand in all of this and if we file a lis pendens would that tie up the property could they rent the home to someone else in need of help asap
2 Answers from Attorneys
Re: lease option one day late to close
Well, first of all, the unlawful detainer court did not have subject matter jurisdiction to grant the unlawful detiner judgment when title was in issue. You should have consolodated the actions and filed a lis pendens before the unlawful detainer trial. Nevertheless, sounds like the owners' attorney has done a big run around on you. If it has been less than 30 days since the unl. det. judgment, I would probably recommend an immediate appeal.--If it has been more than 30 days, then you would need to at least file a lis pendens to lock the property up. The owner could lease the property but would not be able to sell it to a buyer who needs to obtain financing. You need to act quickly. If I may be of any further assistance, feel free to call my office.
Re: lease option one day late to close
Have you been represented by an attorney at any stage? You seem to have made more than one tactical mistake, first allowing the option deadline to pass then going through an unlawful detainer procedure where the court's jurisdiction was questionable.
In my opinion, filing a lis pendens could also be a tactical error. Maybe, maybe not. What you need to look at is whether you may end up being liable to the owner for damages for improperly tying up his property.
In any event, a party in pro. per. cannot sign and file a lis pendens without prior court approval. See Code of Civil Procedure section 405.21.
Because of the short time frames involved and the relatively large stakes, I recommend that you retain competent, local real estate counsel at once. After checking where you stand on deadlines, that attorney's first job should be to see whether he can negotiate a better deal for you with the owner and owner's attorney. This will be better for all concerned than litigating.