Legal Question in Real Estate Law in California
Through our real estate agent, my husband and I made an offer on a home. We have been pre-approved by a mortgage company. The seller made a counter offer. We signed the paperwork to accept the counter offer. Our agent presented the counter offer and the seller's agent emailed our agent to say that we were the successful buyers and they would draw up the escrow paperwork. 24 hours later our agent told us that we "lost the house" because the seller accepted a "cash offer" for $3000 less than our offer. Do we have any recourse?
3 Answers from Attorneys
The key to whether or not your acceptance was delivered before the sellers accepted the cash offer. It sounds like they did from your narrative. Therefore you would have an enforceable contract to buy the house and the subsequent offer and acceptance is voidable. You have a choice to sue for specific performance, meaning to force them to sell you the house on the terms of the contract, or for breach of contract damages. You should also check the original offer documents you signed. It may have a provision for attorneys fees. You need to move quickly, though. Your bargaining position to avoid a lawsuit over this goes away quickly if the sale to the other party goes through. You don't lose your right to sue, but you may lose your right to choose between damages or the house and be stuck with damages (which in this situation can be hard to calculate). I have over twenty years of real estate law experience and I maintain an office in Orange County to serve southern California clients. I would be happy to assist you with this case, beginning with a free initial phone consulation. If you prefer counsel that only practices in southern California, I know a few very good real estate attorneys down there. So feel free to give me a call at your convenience if I can be of assistance.
Mr. McCormick is right, but maybe an over-arching issue here is whether you want this house enough to go into litigation, risking time and money, or whether it makes more sense to shop for another, in this market. Even if you win (and you very well may) are you overall better off?
I agree with Mr. Whipple and Mr. McCormick and would add that sometimes the threat of litigation is enough to gain the leverage you need to enforce the contract. If the seller knows you are serious about this, they may be inclined to change their position and honor their contract with you instead of the cash offer.
Regards,
Bryan
Bryan Becker
Becker Attorneys
www.becker-attorneys.com
877.201.8728
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