Articles on “Contract”

BUYER OF HOME IN FORECLOSURE LOSES BIG JUDGMENT FOR FAILING TO USE THE CORRECT PURCHASE CONTRACT

Tuesday, May 31st, 2011

Buyer of a home in foreclosure failed to follow the statutory requirements of the Home Equity Sales Contract Act, which requires notice of right to cancel, thereby permitting the seller to recover an award of $660,000 in damages plus attorney fees against the buyer. Capon v. Monopoly Game LLC 193 CA 4th 344 (2011).

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A “NONREFUNDABLE” DEPOSIT NEVER IS

Thursday, February 17th, 2011

A deposit does not become “non-refundable” merely by labeling it as such.  To keep a defaulting buyer’s deposit, the seller must satisfy the statutory requirements for liquidated damages.  Kuish v. Smith (2010) 181 CA4th 1419.

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FORECLOSURE FORBEARANCE AGREEMENT MUST BE IN WRITING TO BE ENFORCEABLE

Sunday, July 18th, 2010

On October 9, 2008 the California Court of Appeal ruled that a lender’s oral promise not to foreclose on a homeowner was not enforceable unless it was put in writing and signed by the lender.  Secrest v. Security National Mortgage Loan Trust 167 Cal. App. 4th 544 (2008)

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NEW HOME PURCHASE CONTRACTS OF “ADHESION” ARE NOT ENFORCEABLE

Wednesday, August 14th, 2002

The California Court of Appeal in San Diego ruled on August 2, 2002 that a residential construction company could not enforce a purchase contract which required home buyers to waive their right to a trial of construction defect claims, or waive their right to a jury, or waive their claims for punitive damages.  Pardee Construction Co. v. Superior Court 100 Cal.App.4th 1081 (2002)

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