Legal Question in Real Estate Law in California

Re: Note sale gone awry

From your description, it sounds like you have a firm contact, presumably signed by all parties, and now the buyer is not willing to perform its obligations. You can file suit to recover the difference between the sale price and what you�re able to actually sell the note for, plus those costs directly related to the contract. However, your potential loss associated with an unrelated deal falling through because the funds were not available from this transaction is likely unrecoverable. To recover this type of consequential damages requires some actual knowledge by buyer of your intended use of the funds at the time you entered into the contract.

If you did not have signed agreement or an enforceable verbal agreement (which is much harder to prove the more complicated its terms), I do not see many options against the buyer. If the buyer had knowledge of your intended use of funds and reliance upon his commitment to purchase, you may able to enforce through the promissory estoppel doctrine � but those cases are very difficult to prove.

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Re: Note sale gone awry

In addition to Mr. Lynes' very solid advice, I would suggest considering whether the broker bears any responsibility or acted negligently. A broker retained by you owes you certain duties, often of a fiduciary nature, and must exercise skill and diligence on your behalf.