Legal Question in Real Estate Law in California

In contract now and builder delivered a different house

We were referred from the investment network here in CA to the RE team in NC. The initial pics of the house on MLS is what we really like to purchase.

We are now in the contract and about to close by the 28th. The builder sent me detailed pics of my house in NC, which is a complete diffrent from what we think we want. Cashier check of 3K has been deposited as a contract started. Referal fee is also agreed and signed. Loan is now in process.

Do I have a legal stand on this issue? What is the best way to remedy this?

I appreciate your advices.

Thanks


Asked on 12/14/07, 1:22 pm

2 Answers from Attorneys

Benjamin Berger Berger-Harrison, A Professional Corporation

Re: In contract now and builder delivered a different house

Generally speaking, if you were promised one thing and the seller is trying to deliver something else, you have every right to be upset and the law probably provides a remedy for you.

However, your situation is complicated. You need to hire an attorney for a thorough consultation.

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Answered on 12/14/07, 1:28 pm
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: In contract now and builder delivered a different house

I would be very concerned that there is a real-estate shell game or bait-and-switch going on here.

First, real estate is identified and sold by legal description, not photo ID. When you signed a contract to buy, you were agreeing to purchase whatever house sits on the lot in the legal description in your contract (assuming this is an existing house and not a build-to-order deal, in which case the analysis is a little different).

Second, it sounds to me that you are buying an investment property sight unseen. Not even the professional investment companies with 10,000 units under management or ownership would do this. Reminds one of the Florida swampland scandals of the 1920s.

Next, are you using a broker who works for you? If so, ask your broker to confirm that "the merchandise conforms to the sample," to borrow a concept from the law of sale of goods.

You certainly do have a legal stand on this issue, and it mostly relates to the concept that what is to be deeded to you at close of escrow must be EXACTLY what you agreed in your contract to buy, both as to legal description of the parcel and also, if there was construction involved, that what was built conforms to what the contracts called upon the seller or developer or contractor to build. If there is not 99.99% conformity to the contract, DON'T close; call a local (North Carolina) lawyer and blow the whistle on the scam.

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Answered on 12/15/07, 12:05 am


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