Legal Question in Real Estate Law in California

The Seller of an apartment building signed a listing agreement using CAR forms. One part of the agreement states that the Seller, by signing, is stating he has full authority to convey the property and no one else is needed as part of the agreement. During the escrow, the Seller provided notices to perform to the Buyer, granted the Buyer access for inspections, and seemed to be proceeding to close. Then a friend told the Seller he should not sell the building. The Seller then said he refused to sell the building because 1) his wife was on title and she didn�t consent, and 2) because the Buyer did not perform in time. However, the Seller granted an extension for the Buyer in exchange for a higher purchase price. The Seller, through his attorney, then asked my company to lower our brokerage commission by 1.5% in exchange for closing escrow. I refused, and demanded mediation. It seems that the Buyer and Seller are going to re-draft the contract, open a new escrow, and close without paying me.

1. I�d like to know the arguments I can make at mediation and whether or not you think they will succeed

2. I�d like to know the potential arguments they have against me in mediation and whether or not you think they will succeed

3. If the Buyer/Seller close escrow by cutting me out, do I have a claim against the Buyer/Buyer�s broker? Would that entitle me to more money from the Seller since he breached the listing agreement?

I also need an attorney to attend arbitration, which provides for attorney�s fees. If there is a very good, detailed answer from an attorney on this, I�d like to potentially use you.


Asked on 4/28/15, 4:57 pm

1 Answer from Attorneys

Bryan Whipple Whipple Law Office

I'd start out by verifying whether the wife really is on title and when she first appeared as a co-owner, then perhaps I'd inquire whether anyone bothered to check the title between the time of the listing and the opening of escrow. The seller is not operating in good faith, but perhaps the other parties have been a little lax.

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Answered on 4/28/15, 7:31 pm


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