Legal Question in Real Estate Law in California

Re: Real estate

You need to read the purchase contract you signed and/or have it reviewed by an attorney. Most purchase contracts for REO, or bank-owned properties contains an escape clause for the bank in the event that there was a defect or problem with the foreclosure sale resulting in the bank not having clear title to convey to you. In that case, you have no option except those provided for in the agreement, which may allow you to cancel, or may allow you to remain in escrow until they can convey clear title. In either case, its unlikely that your contract gives you the right to any sort of damages for their failure to close in a timely manner. In theory, you are buying the property below market, and so the give-and-take is that you may experience delays just like this.

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