Legal Question in Real Estate Law in California
Sued for fraud in selling an apartment building
The plaintiff purchased my 7 unit apt building in Dec, 05. He had to replace or fix air conditioners, heaters, flooring and now claims he was ''induced'' to purchase the building by fraud. I feel nothing was hidden, he had time for due diligence inspections and he knew he was buying an older building. Can I ask his attorney to see receipts for all repairs and replacements before I decide to run to an attorney?
4 Answers from Attorneys
Re: Sued for fraud in selling an apartment building
You don't have much of a choice but to run to an attorney. Navigating the litigation process by yourself could be disastrous. There are certain things the plaintiff needs to prove to win. The plaintiff may be establishing that proof while you're distracted by or focused on a non-issue or a relatively minute one.
Receipts of repairs are relevant. Sure. But that's not the end all. The plaintiff isn't required to repair or fix anything to be entitled to damages.
Also, whether you are liable is another issue, and perhaps the main one. A seller of real estate has a duty to disclose known material facts about the property. Did you? If you didn't, has the plaintiff sued on those particular issues?
We have handled many real estate cases like this throughout the Los Angeles area, on both the plaintiff and defendant side. Feel free to email with additional questions.
Re: Sued for fraud in selling an apartment building
If you're being sued, contacting the other party's attorney is a Real Bad Idea. Do not talk to the other attorney AT ALL. Retain your own attorney. The attorney you retain will know how to obtain the documents you need. You have but 30 days from the time you were served with the Summons and Complaint to have your response filed the correct way.
Run if you must, but act well in advance so your attorney will have plenty of time before the response is due.
Re: Sued for fraud in selling an apartment building
Sure.
Re: Sued for fraud in selling an apartment building
I agree with what Mr. Stone says. With regard to your desire to see receipts, keep in mind that whether the Buyer actually did or did not make those repairs is probably not the issue of the day.
Based on the cursory facts you've provided, this seems to be a question of Disclosure, with the issue seeming to be whether or not you made the required disclosures about the property.
If the Buyer suffered damages as a result of your failure to disclose information which you knew, and were required to disclose, then you may be liable. Also, if you made misrepresentations about the property, which caused Buyer damages, you may be liable.
Keep in mind that the Buyer will have most likely suffered damages regardless of whether or not he/she repaired problems which you may have failed to disclose . . . this is why I say that whether or not the Bueyr has receipts is probably not the key issue.
As Mr. Stone says, you should contact an attorney.
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