Legal Question in Real Estate Law in California
If a seller transfers title to another entity ie. relocation company in the same escrow prior to transferring it to the buyer in a single family residential purchase, then is the seller's duty to disclosed transferred to the relocation company by operation of law without being specified in the escrow instructions or anywhere else. For example, if the sellers intentionally fails to disclose a material fact and the relocation co does not know anything about it, is there any recourse against anyone? Lets assume that the seller has filled out a transfer disclosure statement but not the relocation co. Thanks.
1 Answer from Attorneys
Just by coincidence I came across a case on just this issue last week researching for an arbitration brief. As with so many questions in the law, the answer is "it depends." In this circumstance it depends on a lot of details related to the arrangement between the relocation company and the seller, as well as the timing and circumstances of the transfers of title. The short answer, though, is that an owner of real property cannot hide behind an interrim transfer to a relocation company to avoid the duties of disclosure that both statute and common law impose on sellers of real property.
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