Articles from June 2010

CONTRACT LANGUAGE ADVISING BUYER TO INVESTIGATE CONDITION OF PROPERTY BEFORE RELYING UPON AGENT’S STATEMENTS DOES NOT PROTECT AGENT FROM LIABILITY

Saturday, June 26th, 2010

SUMMARY: The California Court of Appeal for the Fourth District on January 24, 2007 ruled that a real estate broker can be liable for fraud by telling the buyers that the County told him the property could be subdivided when in fact the property could not be subdivided. Manderville v. PCG&S Group Inc.   146 CA4th 1486 (2007)

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HOME MORTGAGE LENDER MAY BE LIABLE TO BORROWER FOR MARK-UP OF LOAN TRANSACTION COSTS

Saturday, June 26th, 2010

The California Court of Appeal for the Second District ruled that when home mortgage lenders charged borrowers a marked-up price for the cost of services provided by others, such as underwriting services, tax services and wire transfer fees, then the lenders can be liable for violations of state and federal statutory protections. McKell v. Washington Mutual Inc.  142 Cal.App. 4th 1457 (2006).

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FAILURE TO MEDIATE, WHEN REQUIRED BY CONTRACT, CAUSES THE PREVAILING PARTY TO FORFEIT RECOVERY OF ATTORNEY FEES

Saturday, June 26th, 2010

The California Court of Appeal for the Fourth District ruled that the standard form CAR residential purchase agreement used in California which requires the buyer and seller to mediate as a condition to an award of attorney fees in subsequent litigation is enforceable.  Consequently a prevailing party who failed to mediate prior to commencing litigation was denied recovery of $158,000 in attorney fees. Frei v. Davey  124 Cal App. 4th 1506 (2005)

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