Legal Question in Real Estate Law in California

I'm closing on a short sale, the county will record by Tuesday. Seller was to have tenant out 5 days before closing in our purchase agreement, tenant is still there. They owed seller $8K in unpaid rent and she only just served 3-day notice after we threathened the contract breach.

Her agent wants me to sign away suing against contract breach in exchange for $8K from tenant. But then this is my headache, I have to pay for an eviction attorney, keep paying rent, bills etc. until this is taken care of and there's no guarantee I'll get the $8K from tenant.

Have asked the seller for $2K to pay now into escrow for my extra rent, legal etc. but they're saying she has no $, this is a non-profit short sale.

I don't want to walk away, I love the house so I need some good advice. Thanks

Oh, also is there a way for me to hold up the county recording until seller takes care of tenant.


Asked on 9/26/09, 2:42 pm

2 Answers from Attorneys

Contact the escrow and tell them you want to hold the close due to a failure of a condition of the contract. If, as is common practice, the contract was deposited in escrow, they have notice of its terms and will be inclined not to close or record when on notice of a breach of the contract. That will buy you time.

As for the rest of it, we'll need a specific question for this format. Otherwise you should consult with an attorney who is familiar with residential sales and escrows. I happen to qualify, but given my location would only be available for telephone consultations. So you might prefer someone local.

Read more
Answered on 9/26/09, 3:26 pm
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

If there is a third-party escrow holder, you need to work with it. Keep in mind that escrow holders don't make decisions; they mechanically follow instructions already given them by the parties. To get it to delay recording, you'll need to convince the escrow holder that some reason for holding up recording exists, based on a pre-condition to recording, contained in the instructions the parties have given.

Read more
Answered on 9/27/09, 12:36 am


Related Questions & Answers

More Real Estate and Real Property questions and answers in California