California  |  Real Estate Law

Re: Whats a contract?

Possibly. If he lied to you and signed a paper promising to rectify, but now intends on keeping the money, you should be able to recover the money and any other consequential damages. I would need to review your RPA and other documents to be sure. You may contact me.

Re: Whats a contract?

A contract is an agreement between two or more parties, for the breach of which the law provides a remedy. That's the academic answer. In practice, a contract arises when two or more competent parties reach agreement on legal subject matter, and the agreement is supported by the exchange of consideration; there is an agreement when one party makes an offer and another accepts the offer.

However, your question goes well beyond whether you had a contract with your broker to correct his error. Contract or not, your broker has a duty to represent you competently and without negligence. You have an inherent right to damages for losses you incur as a result of your broker's negligence.

You don't say whether this broker was a loan broker only, or whether he/she represented you as the buyer's broker. I think the duties of a loan broker might invoke a different, possibly lesser, duty of competence toward you.

The broker may have defenses. These could include your inviting the error by (for example) making misleading statements about 3 points being OK even though your lender would have accepted 2, or reading and approving the erroneous document.

Unless deliberate fraud was involved, you won't be able to "take the firm to the cleaners." Instead, you should be able to recover your actual monetary losses, probably 1% of the loan amount, plus court costs. Whether you can also recover your attorney fees depends upon whether the contract contains a fee clause. You should also look to see whether the contract requires disputes to be arbitrated.

Re: Whats a contract?

Need more information as to actions of broker and total involvement of broker. Call to discuss if you wish.

Re: Whats a contract?

Wow, 3 points! You should be able to get the refund. Check the disclosures your broker sent you and see if they were quoting you 2 points or 3. If it's 2, he cannot increase it to 3. The Cal. Department of Real Estate may help you if they refuse to give you a refund.

Re: Whats a contract?

don't worry about what a contract is go out now and get yourself a good real estate litigation attornory who will write the correct and heavy duty letter to the proper parties and can advise you of your alternatives and you will be better off in the long run but do something positive and pro-active ---