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?


Asked on 4/20/99, 4:28 pm

1 Answer from Attorneys

Thomas W. Newton Tims & Newton

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


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Answered on 4/21/99, 4:11 pm


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