Legal Question in Real Estate Law in California

You have to wait and see for what he sues you for. If you are a broker, your broker will have insurance to protect you.

Unforturnately, anyone can sue anyone. More often than not, someone is looking for someone to blame for his bad decision other than the one he sees in the mirror. They are also looking for deep pockets to make him better.

Other than that, you will need to respond to the lawsuit through an attorney.

If you are sued, i.e., served with a summons and complaint, you must file and serve a response in order to avoid losing by default. It is better to have a lawyer study the complaint, get your position, and prepare a response, probably an "answer," but there are other possibilities such as a demurrer.

Remember that a real estate licensee assisting a client as a buyer's agent has finduciary responsibilities to use skill, diligence and great care to understand the client's needs and to steer the client away from bad deals. That doesn't put the agent in the position of a guarantor of a happy result, but for sure the agent needs to take some precautions on behalf of his or her client.

How was it that you did not make any money on the transaction? Do you mean that you didn't earn or receive a commission? Did you have a business relationship with a broker at the time? Is thre something unusual about the transaction? Some more facts would be helpful here in advising you on your recourse.

"What is my recourse"

To defend the case with whatever admissible evidence, testimony and legal arguments may apply. The actual facts will determine all those issues. If serious about getting legal counsel on this, feel free to contact me. It may be possible to resolve it through effective negotiations, motions, mediation, etc., without having to spend substantial defense fees and costs.