Legal Question in Real Estate Law in California

Re: Rescission of real estate sales contract

The first thing that strikes me upon reading your question is that there is no mention of brokers or an escrow holder, not to mention lawyers. Concerns about being ripped off are less likely when those professionals are present.

When you say you've "sold" the property, do you mean that you've signed a sales contract or that you've executed and delivered a deed? If the former, you are pretty well protected, because you simply don't let escrow close until the down payment and loan proceeds are held in escrow.

If on the other hand you've delivered a deed to the buyer, rescission of the contract is futile. Title passes upon delivery of the deed, and even tearing up the deed with the intent to rescind the sale does not un-do the passage of title -- that can be un-done only by the buyer deeding it back (or getting a court to cancel the deed). You could perhaps sue for breach of the contract as well, but that's not the same as rescission.

So, if you are merely "in contract," so-called equitable title may have passed, but not legal title, and your escrow is your protective device. On the ohter hand, if legal title has slipped out of your hands, you're probably going to need a lawyer, and quite possibly you're headed for court.

Re: Rescission of real estate sales contract

This is probably something that can be resolved with a couple phone calls or a letter from an attorney. I seriously doubt that the investor believes he gets the property without paying for it. The title issue can usually be easily resolved. And if the investor wants to keep the property in light of a title issue, perhaps he's waived the issue. Also, you can file a lawsuit, record a lis pendens against the property, and obtain a judgment against the investor. Again, I don't think it will need to go that far.

Give us a call if you're interested in taking a less expensive, informal approach to resolving this.

Re: Rescission of real estate sales contract

It depends on the paperwork. You may have to sue.

JOEL SELIK Attorney at Law

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Re: Rescission of real estate sales contract

It would depend on the state of the transaction and the terms of your contract. Generally, absent fraud you do not have the right to rescind a real estate transaction after the property has been transferred. Get your paperwork in front of an attorney as soon as possible.