Wave goodbye? Not! Lease or contract provisions commonly state: “In the event of litigation between them, the parties hereto expressly waive trial by jury.” Now, three years later, there is a dispute, and you want a jury. Are you stuck with that waiver? Nope. The California Supreme Court has ruled that: “…pre-contract jury waivers are… CONTINUE
Congratulations – You’ve Been Sued!
A “hot” market just means deferred litigation. For many. We’re not the only ones that think so. Calls from brokers, buyers and sellers tell us: time in court is coming a broker’s (and agent’s) way. The rising real estate market covered a multitude of sins, sins which are now becoming clear. In addition, 85% (… CONTINUE
Renewals
If you don’t do it right, it just wasn’t done. A tenant with an option to extend a Lease must strictly comply with the terms of the Lease with respect to how to exercise that option right. If the Lease is silent on how, the tenant can merely call the landlord and say that the… CONTINUE
Lis Pendens aka “Deal Killer”
It’s a simple document – that can strike fear in the heart of the most experienced owner, buyer, or broker. A Lis Pendens (Latin for: Notice of Pending Action) is recorded to advise a potential purchaser or lender of another’s claim to ownership of the real property that is adverse to the owner of record…. CONTINUE
I Surrender!
Did the tenant surrender the lease, or abandon it? Does it matter? It does, if the landlord still wants to get that rent that’s not going to be paid now! A tenant may “abandon” or “surrender” a lease before the lease is scheduled to end. In the first instance, an “abandonment,” all the rent remaining… CONTINUE
Nine Tenths
“Possession is 9/10ths of the law.” Is it really? Can somebody buy real property without a written agreement? Generally, no. But then again, there are always exceptions. The “Statute of Frauds” states that an agreement to buy real property must be in writing to be enforceable. One of the exceptions to the Statute of Frauds… CONTINUE
BFP – BFD
“Bona-fide purchaser for value without notice” Huh? So what? Those words can save somebody when a 3rd person makes a claim of ownership adverse to theirs. Like the times when a seller sells the property twice. Who owns it when the first buyer didn’t record the deed yet? Generally, the second buyer if they record… CONTINUE
Special Delivery!
If you get lucky and get a good deal at a foreclosure sale, can the former owner challenge your bid and get it set aside? Sometimes. The key is to get the Trustee’s Deed DELIVERED to you as soon as possible. Acceptance of delivery (which doesn’t require recording, but that’s important too) gives you, as… CONTINUE
Slapp Happy
When are demand letters and other communications useable as a defense to a lawsuit? When your lawyer is really creative. Or not. A recent court of appeal decision held that correspondence from one partner to another in which the first partner tries to talk the second partner out of selling the second partner’s interest to… CONTINUE
Shields and Swords
Need some polish for your “Corporate Shield?” Many brokers (agents too) have set up corporations for themselves to protect against claims. Then they forget about the annual “formalities” or use the “company” money for personal expenses – which allows a plaintiff to “pierce the corporate veil” and go after their personal assets.
(Boring but Important) Buyer’s Choice Law
A California law, AB 957, known as the Buyer’s Choice Act amends Civil Code Section 1103.20 through 1103.23 regarding title insurance and escrow service providers. Federal RESPA law prohibits the seller from requiring the buyer to purchase title insurance from an insurer designated by the seller. RESPA applies to the sale of 1 to 4… CONTINUE
Verify This!
“The seller told me – so it must be true.” Don’t bet on it. At least not without checking first. President Reagan wasn’t the only one to say, “Trust; but verify.” Under California law, a real estate broker has an obligation to independently verify information passed on to a client OR, advise a client of… CONTINUE
