Legal Question in Real Estate Law in California

Re: Liquidated Damages

If you have a valid money judgment against the buyer, you simply need to enforce that judgment. The first thing you need to do is record an abstract of judgment in every county in California where buyer may have real property. The next step depends upon how much information you have about the buyer (i.e., where does the buyer work; where does the buyer maintain bank accounts and what are the number of the accounts, etc.). You can apply to the court to obtain a writ of execution to levy upon any bank accounts the buyer may have, and can ask the court to allow a wage garnishment to collect the money. You can read about various steps to enforce a money judgment by visiting your local law library and reviewing the following book: Schwartz and Ahart, California Practice Guide: Enforcing Judgment and Debts (The Rutter Group, 2003). You may also want to consider hiring an attorney to assist you.

With respect to the Escrow/Broker, you have probably foreclosed any action you may have had against them by filing your small claims suit and losing. Even assuming that you may have some claim which was not barred by losing your small claims action, it is often times very difficult to prevail, under the facts given in your inquiry. You may, however, wish to report the broker/escrow to the California Department of Real Estate. Escrow companies are required to retain funds they hold in the event of a dispute between the parties, unless and until the parties agree on a method of distribution.

While the Escrow company may have breach some duty by refusing to communicate with you, again, you are probably barred from any action against them because of your small claims suit.

Finally, unless the purchase agreement and/or escrow instructions signed by the buyer provide for some penalty for the buyer's refusal to cooperate or execute documents, there is probably no penalty for the buyer's refusal to sign cancellation instructions.