Legal Question in Real Estate Law in California

I am a Real Estate Broker who is short selling my client's house. We're in escrow and have received the formal short sale approval from the bank on her 1st DT which was for $500K. The new sales price is $260K, the current FMV. Her brother currently holds the 2nd DT at $160K but is now refusing to sign the grant deed and reconveyance unless she pays him $10K in cash which she doesn't have. He has promised to sign at least 12 times. The foreclosure sale is scheduled for 10 days from now. He will not receive a dime if it is foreclosed upon as there is not sufficient equity. Now he took the advice from another Realtor who is telling him that he can sell it to his son's as a short sale. First he is not on the Title so he wouldn't be able to sell it. Second, we already have a bonafide buyer who will have loan docs at escrow soon. The bank would not likely allow them to be removed from their position to purchase. Third, they can't short sell to a relative. My question is do I or the seller have any claim against the other Realtor or her brother for Tortious Interference with a Contract or any other claims for his interference with a bona fide buyer?


Asked on 1/25/10, 4:37 pm

1 Answer from Attorneys
George Shers Law Offices of Georges H. Shers

You might have a valid claim if the other Realtor knows or should have known that the brother could not complete a short sale and is urging him in order to collect some sort of compensation for him/heself. I think the former clearly exists , but you need facts to show the latter. Write the realtor as detaled letter as to why the brother could not take part in a short sale, the effects the opposition will have, that there appears to be no reason to give such faulty advice except to extort the $10,000 from his sister, etc.

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Answered on 1/30/10, 5:26 pm


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