Legal Question in Civil Litigation in California

You should probably consult with an attorney right away given the concern about the Statute of Limitations. In particular, you need to confirm that your claims are governed by the arbitration provision (they should be). Mediation participation is required if you hope to recover attorney's fees as damages (in most real estate contracts), but you are correct in believing that the case may not settle. If the claims are within the arbitration provisions, then you need either a written agreement with the other side or a Petition to Compel arbitration within the statute of limitations. Again, the best thing for you to do is to sit down with an attorney who can review the case with you and review the applicable contracts and documentation.

I agree with Mr. Feldman that you should sit down with an attorney as soon as possible. There is no benefit to waiting. To answer your specific questions:

-- If the nature of the fraud is such that the contract itself is fraudulent and you want to have it voided, then yes, you can sue right away. If, however, you have the more common types of fraud in a residential real estate sale, such as undisclosed defects, and assuming you used a standard CAR form purchase agreement, you will have to mediate before filing suit.

The clock on the statute is not started by anything to do with the mediation. It starts with the first breach of the contract, or when you first knew or should have known of the fraud. The good news is that you probably have another year left to go on the shortest statute that would apply. The only exception is if you want to enforce an oral contract. The limitations period for that is two years from the first breach of the contract.

I have over twenty years experience in real estate law, including six years as a vice-president and senior litigation counsel for the parent company of Fidelity National Title and Chicago Title. I have also served as a Judge Pro Tempore in Santa Clara County since 1994. I provide both legal representation to parties in disputes, and serve as a neutral mediator and arbitrator. I have office and conference facilities in Palo Alto, Sunnyvale, Cupertino, and across from the courthouse in San Jose. If there is any way I can be of service to you, either as legal counsel or as a professional neutral, please let me know.