Legal Question in Real Estate Law in California
Mutual Release
After purchasing commercial real property in Contra Costa County California, buyer discovered drainage problems not disclosed by seller. Seller has agreed to fix drainage and wants a release signed by buyer that waives all rights under Cal Civil Section 1542 : " a general release does not extend to claims which the creditor does know or suspect to exist in favor at the time of executing the release which, if known by him, must have materially affected his settlement with the debtor."
Buyer cannot test reliability of drainage work done by Seller until winter season returns. What kind of release can be drafted to address this concern?
1 Answer from Attorneys
Re: Mutual Release
I'm reading this message as indicating that the
seller will actually conduct the repair work with
seller's own contractors, employees, whatever.
The seller's release language is fairly standard...
most mutual releases include the verbiage waiving
the effect of CC Sec 1542.
Given your circumstance, you'd probably want language which states
that the release is not effective until after the
winter rains have "tested" the seller's repairs,
i.e., after proof that the repairs have been conducted
properly. Alternatively, you might include a
provision that reserves your right to make
additional claims in the event the repairs prove
ineffective, notwithstanding the fact that
the parties have waived the benefits of CC 1542.
Drafting the right language shouldn't be that
difficult. Contact a lawyer specializing in
construction litigation, and they should be
able to do the wordsmithing in short order.
The foregoing information is provided as an
accommodation only, and does not constitute legal
advice or a legal opinion based on a comprehensive
review of all relevant facts, nor can provision of
such information be construed as creating an
attorney-client relationship.
I hope this helps.
Thomas Newton
Tims & Newton
14401 Sylvan Street, Suite 215