Legal Question in Real Estate Law in California

Re: Real Estate - Construction Defect

Our CA attorney is also a CA real estate broker and we both have construction law experience, if you want to consult with us on this.

Re: Real Estate - Construction Defect

Since you signed an arbitration clause as long as the procedure to go to arbitration is relatively fair, you are stuck with arbitration. But that process is much faster and much less costly than the alternative which is a civil trial, so it probably is to your advantage. Also, very few attorneys would take a case in which the the recovery would be $15,000, but since it will be arbitrated the case will take less time and more attorneys are likely to be willing to take the case. You probably still have the right to conduct discovery [depositions, written questions to the other side] which may help show the other side that they have a weaker case then they think. They also have to take into account their potential costs. In addition, the normal way of measuring damages is what have they lost. Were they able to sell the condo; if so when and for how much? Were these really liquated damages; I think it would be possible to measure the actual damages so you might be able to get around that. A material misrepresentation of what you were going to buy would be a basis to allege that they breached the contract, but it does seem that there might be some some comparative negligence on your part. The best thing to do is find out when and for how much they sold your unit, speak to the buyer as to why he paid that sum if it was less than what you were going to pay [because of the deficiencies you mention], and then a sharp letter, probably from an attorney to show that you mean business and are not going to be scared into giving up your money. I [semi-retired]would charge you $75 an hour for talking with you and writing a letter, but I will also give you some additional short free information if you contact me with additional information as I suggested above. Good luck.

Re: Real Estate - Construction Defect

If you signed or initialed an arbitration clause, then you have to arbitrate. You should also look to see if there are mediation and/or attorney fee clauses. This case sounds like one that will be up to the judge, jury or arbitrator to decide based upon the credibility of witnesses and the proof or lack thereof of the factual assertions of the parties. There are legal disclosure requirements, and the finder of fact will have to decide whether things like "may vary" were adequate to cover your situation.

As long as they are "pinching" your $15K deposit, you may be wise to test them by asking for arbitration. Be wary if there is an attorney fee clause; that raises the stakes and can make losing very expensive.

Maybe you should also ask local real estate lawyers if there is any experience in dealing with this developer or any scuttlebut on its ethics or reasonableness.