Legal Question in Real Estate Law in California

I looked at several cases and a couple of on-line discussions about this. There seems to be no single answer that'll fit all situations. First, some escrow contracts contain a clause setting a specific limitations period, typically two years, and such provisions are generally enforceable. In the absence of such a provision, one trend is to treat the negligence as a breach of an implied contractual provision and to apply the four-year breach of contract statute, while some other cases apply the same three-year limit applicable to slip-and-fall type (tort) negligence. Finally, there is the question as to whether the time period starts when the negligence occurs, or when the injured party first could or should have learned of the negligence. In most cases, it seems to be the latter.

I agree with Mr. Whipple, that a) it is dependent on the specifics of the case and how the cause of action arises, and b) that it may be as short as two years, so that is what I always recommend clients consider to be the limit unless that has already passed, in which case I will look more closely to see if there are grounds to assert a longer time.