Legal Question in Real Estate Law in California
I am in the process of a short sale in the state of California as the seller. All the banks that have stakes in the property have agreed to a short sale. I hired a real estate agent/broker to aid me with the process.
A buyer has be found and I signed a documented that stated how much the buyer was initially paying along side the total price of the property. Unfortunately, I could/can not read the contract since I can not read English. The contract was not translated for me. Some of the terms of the contract I do not agree with yet I signed the contract already. I did not make this known because it was not possible for me to understand the whole contract. On these grounds, can the contract be dissolved?
On a relative tangent, since my real estate agent did not help me understand the contract I was signing, I have lost trust in the agent. On these grounds, can the contract be viewed as unlawful.
2 Answers from Attorneys
Not sure what the problem is. Are you saying that you accepted the offer and now regretting. Most real estate agents will use standard forms in the transaction so I am not sure what else you can modify the contract. If you want, you can always issue addendums. You must have understood the price figure before signing. Nothing indicates your agent did anything wrong to warrant a rescission of the contract.
I think, more likely than not, the contract would be upheld as valid and binding in a court of law. The tendency, although deplored by some writers, is to enforce agreements that have been signed by the parties in the absence of some actual trick, artifice, deception or fraud, and the inability or failure of a party to read and/or to understand the contract is not a ground to have it set aside. I hasten to add that not all legal scholars or writers fully agree with this method of handling a party's lack of knowledge of the language, but nevertheless this is the predominant view today.
Turning to the real estate agent's failure to explain all of the terms or to provide you with a translation, I think you have considerably better chances in court on this issue. Your agent and broker owe you substantial duties (called "fiduciary duties") to use their expertise and experience to guide you in all respects of your business dealings where they represent you. Their failure to explain all material aspects of the contract you were being presented for signature probably violated these fiduciary responsibilities and might be a ground for a lawsuit for damages against the broker and agent. Whether such a suit is a good idea would depend upon whether you sustain any significant, provable loss as a result of their failure to explain the agreement, and perhaps other factors, but would not nullify the contract.
So, in sum, I'd say the contract is probably valid, but the real estate professionals might be responsible for any loss the contract causes you.