Legal Question in Real Estate Law in California
Being Sued..Am I liable?
The prop was listed through a reputable Real Est.Brk Mar, 2002. In Apr, 2002,,the sale was made,and escrow closed. Now, over a yr later,Buyer is sueing, not only me but the R.E. Brk, the Loan Co, etc.
Buyer'slawsuit is based upon an issue involving a guest unit on the prop which was not permitted,& he's stating he was unaware of this, prior to purchase. This is untrue, however he's claiming ''Breach of Contract''-'''Fraud''..''Neg Misrepresent'n'',Neg Infliction of Emot Distress''-just to name a few causes of action.
While all of the other Def's, are represented jointly,including the Brk's, Agt's,etc- I am not being rep'd & left to fight this alone.The R.E. Co. said I should sue my Hmowners Ins.& force them to pay for the legal expenses, etc.
It seems to me that I should not have the burden of dealing w/ this alone, after all that's why the prop was put on the mkt with them.- they're the experts, not I. I simply wanted to sell my hse,& now I'm in a real predicament, it seems.
Is there any recourse, for the way they're handling this? the advice I've been given so far, somehow doesn't seem right.
6 Answers from Attorneys
Re: Being Sued..Am I liable?
Bring in other parties with a cross-complaint. Call me directly at (619) 222-3504.
Re: Being Sued..Am I liable?
Everything depends and the contracts and disclosures. You may have a good case as well as a case for indemnification. Please contact me for consultation at 714 363 0220 and I can assist you in at least explaining your rights and obligations.
Re: Being Sued..Am I liable?
I don't know where the property was, but the zip code suggest this might be a Los Angeles County lawsuit. If so we can talk about representing you in this action. What everyone said is fine.
Proper handling of this case will be to protect you interest and have the broker's attorneys take the laboring oar. This will minimize your costs. You also need to file a cross-complaint against the brokers for full or partial indemnification.
I too believe that its a longshot to get your homeowner's insurance to defend, but notice and demand can be made. One would have to examine your policy and see if a predicate can be seized upon.
Also, its best to review both the listing agreements and the purchase agreements to determine if a legal predicate exists to sue to recover your attorney's fees as the prevailing party.
If the broker and his attorneys get to the point of determining conflict of interest issues, it may accept tender of defense and indemnify you. Not before.
Re: Being Sued..Am I liable?
After a legal analysis then, probably, submit to broker for indemnification and defense.
Joel Selik
Attorney/Real Estate Broker
800-894-2889
www.SelikLaw.com
Re: Being Sued..Am I liable?
If you informed the broker/ real estate agent about the unpermitted building, then the broker would be liable for not ensuring that the proper disclosure was made.
Be certain that you file your answer to the complaint before the 30 days after you were served with a copy of the summons and complaint.
Contact a real estate attorney, with all of the listing documents, sales agreement, escrow instructions, and the complaint.
Re: Being Sued..Am I liable?
Whether you're right or wrong, and whether your homeowner insurer should assume the defense or not, you'll be in a heap of trouble if you fail to file and serve an Answer in the proper format within the allowed time after service, usually 30 days. Attend to that as a priority measure.
I think it's a long shot to get a homeowner insurer to assume your defense, but to play that card you must inform them of the suit and demand to know whether they will step in, and if not, why not. You may be better off bypassing them and getting your own lawyer immediately
Hard to say who will win here, but ultimately if you are well represented and you did not participate in withholding information that should have been disclosed, the broker should end up bearing the brunt of any judgment the buyer might obtain, based on his professional responsibility.
Don't make the mistake of waiting for someone else's lawyer to defend you. Get your owm, then pin the liability and the defense costs on the truly guilty parties.
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