Legal Question in Real Estate Law in California

please help urgent

I communiated via emails with a seller on ebay for the purchase of a property. The seller agreed to sell the property for 2000.00 down and the rest paid over five years at 9%. After I sent them the down payment and the first month's check, they said that they were going to cancel their offer unless I paid them in full or at the least paid them on a two year term at 9%. They have refused to return my down payment and first months check and say that they don't have to and they can do whatever they want. They are a registered business in North Dakota. What can I do to either get my money back or be able to buy the property at the originally agreed upon terms? I also had bought a property from them on ebay in august 06 that they now have said I need to pay them in full for even though our contract which in this case in signed and notarized by both parties agrees to payments over five years at 9%.

Thank you for your help


Asked on 1/14/07, 7:22 am

1 Answer from Attorneys

Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: please help urgent

I'm not sure I can give you a comprehensive answer to your problem, but I do have a few random thoughts that might be helpful.

First, your question is posted as one involving California law. Maybe that's right, but if the seller and the land are both in North Dakota, I think it is at least possible that North Dakota law will apply and/or that jurisdiction for any legal action would be in North Dakota.

Second, the fact that eBay is headquartered in California does not place jurisdiction there, nor is eBay a party to the contract or likely to give you much help.

Next, I wonder if any of your deal was in writing. Specifically, if you don't have something in writing signed by the seller, you may have a harder time enforcing the credit terms that were agreed to orally. In some cases, e-mail correspondence can be legally binding, but just where North Dakota law stands on this in the context of a real estate finance agreement, or a purchase agreement, is unknown to me.

Finally, if the seller does not perform, you are probably entitled to a refund of your money under some legal or equitable theory. Exactly what theory governs depends upon state law and the status (binding nature or not) of your agreements.

As a footnote, real estate sales agreements can be divided into those that call for transfer of title on closing, and those that call for the seller to deed the property over upon the future making of a final instalment payment. This latter arrangement is often called a "contract for deed." The difference is whether you are the legal owner "of record" or not during the life of the mortgage. My guess is that you have one of these; that you haven't received a deed, and wouldn't until the final payment.

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Answered on 1/14/07, 1:52 pm


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