Legal Question in Real Estate Law in California

I recently placed a bid on a home owned by a bank. The bid was accepted, we signed papers and i cut them a check for $17,000 to show my seriousness in purchasing this home. This was late may early june. As soon as I signed papers to purchase this home, I placed mycurrent home for sale. Within a week, i had accepted a bid and signed papers. We agreed that I would give the new owners the key by the end of July. The bank then informed me that the house i had bid to purchase, had some hazardous problems that needed fixing. They assured me that they would cover all expense for the fixtures. June came and went as did most of July, everyday my real estate agent pressured the banks office to hurry with the necessary fixtures so that I could move my family and i into the new home. Tommorow morning I have to turn in my keys to the new owners that purchased my home. I have no where to go. I am stressed, my family is stressed. My kids ask me why were homeless, and where are we going to sleep. I find myself so stressed i cry myself to sleep. Today the bank informed me that they would not cover the expenses to fix the home i bid on. That i would have to come up with the $20,000 dollar cost to fix the problems. If i do not fix them, they will not sell me the home. Can they do this to me? Can they go back on their word and contract of selling the home as is? Please let me know. I need some help. Thank you in advance.


Asked on 7/29/09, 6:42 pm

1 Answer from Attorneys
Benjamin Berger Berger-Harrison, A Professional Corporation

An answer would require a review of the contract between you and the bank. It is quite possible that you may be able to stay in a hotel while waiting for the bank to deliver the home to you and then pursue the bank for that expense. However, the analysis is totally dependent on a review of the contract and other documents. If you have a real estate broker, he/she should be able to help you understand. You may need to hire an attorney to get a more thorough analysis of your rights and options.

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Answered on 7/29/09, 7:25 pm


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