Legal Question in Real Estate Law in California

Re: Real Estate Breach of Contract

As Mr. Whipple points out, this is quite complex with many ramifications.

You should retain an attorney ASAP.

Re: Real Estate Breach of Contract

Since you have been sued and have to defend, the cost and nuisance barriers to taking action against her have been lowered somewhat. You have to file an answer (or demurrer), and might as well cross-complain to level your charges against her.

This does not look like a plain vanilla breach of contract case, however. Since you and your ex-wife were both sellers in the contract, there may not be any express promises extending from her to you that you can point to as breached. Most likely, you were or are a third-party beneficiary of the agreements between your wife and the buyers, and a suit against her would have to be researched and written (I think) as the claim of an intended third-party beneficiary.

You will also have a bit of a problem establishing damages. Although the loss of an expected sale hurts, how can you quantify damages? You still have the house, or whatever interest you had in it before the sale deal cratered. If and when it eventually sells (through foreclosure or whatever) you will be able to figure (and prove) whether you lost money or not, but at present the lost sale only gives you a conjectural loss that would probably not support a verdict and judgment. I could be wrong.

The whole situation should be reviewed by an attorney - and in time to prevent a default on the bogus civil suit - including a review of your divorce property settlement, the whole house sale deal, and the basis on which the ex has taken up residence in the house.