Legal Question in Real Estate Law in California

Home purchase question

I read the post on this same subject dated 10/16/05 regarding addendums to purchase agreements requiring owner-occupancy for at least one year. The builder in my case has sold every home, including the models and is willing to terminate the ''Policy Statement and Occupancy Agreement'' for the sum of $21,000.00. Isn't this extortion? How could the seller (builder) be damaged if I were to sell this house within the 1 year period if he has no more homes to sell?


Asked on 10/28/05, 12:05 am

1 Answer from Attorneys
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Home purchase question

It isn't extortion, it is merely an offer that you can refuse. Once you accepted this owner-occupancy restriction you're more or less stuck with it. That's what contracts are all about.

Extortion is defined in the Penal Code as "...the obtaining of property from another, with his consent, ..... induced by a wrongful use of force or fear....." Penal Code section 518, in relevant part.

Offering someone relief from a contractual obligation at a price in excess of the perceived fair market value is not extortion. In fact, it's entirely legal, usually entirely ethical, and it happens all the time.

The builder is just saying "I don't really wanna do this, but if you will pay me enough, well, OK."

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Answered on 10/28/05, 2:35 am


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