Legal Question in Real Estate Law in California

Prpperty line moved by builder after entering sales contract

Good afternoon! We just purchased a new home. We picked a specific lot and signed the sales contract. Heres the problem. After siging the sales contract the neighbor who borders the back yard began complaining about the new homes looking down into his yard because of the slope on about 15 feet of the yard. To make a long story short the builder decided to sell/give? him the sloped part of the property, which by the way is about 2500 sq feet (about 15% of the property). We fought and said we did not want to give up the property but they did it anyways. My question is this, being that we did not sign anything (although they wanted us to) giving up the property, did they have the legal right to sell/give? it to the neighbor? When we signed our sales contract it included that land, I have the recorders paperwork showing that the lot line was moved after we had entered into the sales contract. With that said, can we sue them for the value of the 2500 sq feet they took from us? My thought is that they sold it to us so it was ours and if they decided to change it they should have to pay us the difference. Am I totally of base or do we have a case?


Asked on 9/22/04, 11:38 am

4 Answers from Attorneys

Larry Rothman Larry Rothman & Associates

Re: Prpperty line moved by builder after entering sales contract

You case depends upon the written agreement and title report. We need more information and review of these in order to assist you. Please contact my office at 714 363 0220 to set up an appointment. I would like to review your written documentation and correspondence.

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Answered on 9/22/04, 11:48 am
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Prpperty line moved by builder after entering sales contract

I'm pretty certain the answer is that the builder cannot sell all or part of the land to anyone else after he signs a sales contract with you, provided you're not in default on the contract. This is because so-called equitable title passes to you upon execution of the contract, making you the owner, subject only to your making the required payments and otherwise complying with the sales contract. Oh, it is also necessary that the seller and you have removed any contingencies, making the sales contract fully and reciprocally binding -- the builder being obliged to sell and you obliged to buy.

The builder might have defenses if some law or zoning rule would make the sale, as descibed in the contract, illegal without the lot-line adjustment.

So, it's not so much a case of breach of contract as it is one of selling what one doesn't own.

The answer must be qualified by adding that one cannot be certain about such matters without giving all the documents a thorough reading.

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Answered on 9/22/04, 12:07 pm
Joel Selik www.SelikLaw.com

Re: Prpperty line moved by builder after entering sales contract

While I do not have all the facts, they cannot take away property that is contemplated in a contract.

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Answered on 9/22/04, 12:45 pm
Christopher M. Brainard, Esq. C. M. Brainard & Associates - (310) 266-4115

Re: Prpperty line moved by builder after entering sales contract

I have fought this same case on both sides. You need an attorney. You may contact me. You need to pursue the builder on a breach of contract theory, fraud and more.

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Answered on 9/22/04, 2:00 pm


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