California real estate disputes are legally complex when compared to other forms of litigation.  In most legal disputes and lawsuits the only remedy available is the payment of damages.  Damages are the financial equivalent of the loss a person or company has experienced as a result of the dispute.  In almost all business or personal services disputes, for example, you cannot force someone or a company to do something to fulfill their contractual obligations.  You may ask the Court to put a stop to something (seek an injunction) but you cannot use the Court to force the other party to “provide 100 widgets by Friday.”

California real estate disputes are legally complex because there are more options for the Judge to consider to make the victorious party in a real estate lawsuit “whole.”  For example, “rescission” is a legal term that allows the Court to “undo” a transaction or contract, in effect returning the parties to the point where they stood before the transaction ever occurred, as if it never happened.  Let’s say you purchase a piece of real estate for $500,000 and you’ve invested an additional $40,000 in legal costs and other expenses to investigate the property such as engineering studies and percolation tests.  You find that the seller failed to disclose a hidden defect they were well aware of prior to the transaction.  The Court may rescind the transaction, ordering the seller to repay not only the purchase price but all of the expenses you have borne in the project.  The title is returned to the seller and you recover the full purchase price and all of the expenses you’ve paid, in effect returning you to the financial and legal position you occupied prior to the transaction.

Pro-Tip: “Real estate in California and everywhere else is unique. And I say that on purpose. It’s unique, meaning a Rembrandt is unique. And according to the law, art and residential real estate is unique. Meaning you can’t just give somebody a bunch of money saying, ‘I’m sorry, I’m keeping your property,’ or ‘I’m not selling the property’ because here’s the money, it’s irreplaceable. It’s unique. So if you have a contract with somebody to buy their property and you performed all the obligations, you can get something called specific performance. You can get a judge to order “No, you can’t buy your way out of this.” You have to give them the property.

This kind of thing happens. Let’s say you have this real estate, you’re at escrow to sell it. You got 10 acres and then you find out before close that oh my gosh, they’re changing where the road’s going now there’s going to be a freeway here and half of yours commercial, and then it’s worth 10 times as much. So you don’t want to sell. It’s unique. You do have to sell, but you’re going to fight like heck, that chains the price and switch it. It’s not even that dramatic. It happens all the time. You have people in escrow, I get ’em five, 10 times a year, you’re in escrow to buy a piece of property and that the seller says, ‘I’m not selling to you.’ And it turns out they had another offer for a hundred thousand dollars more and they just say, ‘Nope, Sue me.'” – Dan Watkins, Founding Partner

In other commercial and investment real estate disputes our client may simply seek financial damages.  California real estate disputes are legally complex.  Our clients value the Watkins Firm’s more than four decades of experience and legal skill in real estate matters and the counsel we provide at each step of the transaction or dispute.  If you are considering a San Diego real estate transaction or are involved in San Diego real estate disputes we invite you to review the strong recommendations of our clients and contact the Watkins Firm or call 858-535-1511 for a complimentary consultation today.