Legal Question in Real Estate Law in California

Re: short sales.

The general law of contracts is that when an offer is accepted it ripens into a contract, sort of like the union of sperm and egg creating a pregnancy. However, in business and particularly in real estate, it is rather commonplace to enter into contracts containing "conditions precedent" which, unless met or waived, will prevent a party from having an enforceable obligation.

In real estate, typical conditions include the buyer obtaining use permits, financing, a satisfactory termite report, etc. etc.

If you are using a real estate agent or broker, that's the person to ask.

Please be warned that buying on a short sale is probably an instance of a "home equity sales contract" as defined in the Civil Code, and such deals are highly regulated. See Civil Code sections 1695 to 1695.17 including 1695.8 providing fines and jail or prison time for certain offenses in this area. Such deals can be done lawfully, but you have to know the rules!

Re: short sales.

No, depending on what agreement says. But you may be able to work out something with other side.

Re: short sales.

It depends upon the terms of the Deposit Receipt. I don't recommend getting involved in short sales with assistance from a real estate lawyer.