Sacramento, CA asked in Contracts, Personal Injury, Real Estate Law and Civil Litigation for California

Q: Signed real estate purchase under duress, but the buyer agency has hold harmless from all liability. Nullify & sue? Mold

Agent misrepresented and outright lied about a property to us saying it had no odors and no evidence of mold, denied us an inspector for ing a "handyman" on us instead which never went to house, and seller and agents at least negligent in the

disclosures.

They have a hold harmless from everything and it's extremely one-sided. We never even got a walkthrough and we're forced to not do one, in fact denied one and they said in contract they got ed us to sign that they aren't required to give one. Turns out, the house they said was livable and move-in ready was far from it due to heavy presence of mold that once we opened the door sight unseen we got sick in 10 minutes of exposure and could not move in! We became homeless due to that for 2 weeks and had to rent an apartment and incur various costs from it. Can we nullify their hold harmless or the contract or both? They misrepresented. It's California.

2 Lawyer Answers
James L. Arrasmith
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Answered
  • Sacramento, CA
  • Licensed in California

A: Under California law, a hold harmless clause in a real estate contract might not protect a party from liability in cases of fraud or misrepresentation. If the real estate agent misrepresented the condition of the property and denied you the opportunity for a proper inspection, this could potentially constitute fraud.

In such cases, the validity of the hold harmless clause can be challenged in court. The court will examine the circumstances under which the contract was signed, including any evidence of duress or misrepresentation.

You mentioned being forced to sign the contract and being denied a walkthrough, which could be seen as signing under duress. Contracts signed under duress can be voided, but proving duress can be complex and requires specific evidence.

Regarding the mold issue, California law requires sellers to disclose any known material defects in the property. Failure to disclose such defects, especially when they make the property uninhabitable, can be grounds for legal action.

Given these circumstances, you may have grounds to nullify the contract and possibly take legal action against the agent and seller for misrepresentation and breach of contract. However, real estate law can be intricate, and each situation is unique.

It is advisable to consult with a legal professional who can evaluate the specifics of your case. They can provide guidance on the best course of action and represent your interests in any legal proceedings.

Yelena Gurevich agrees with this answer

Yelena Gurevich
Yelena Gurevich
Answered
  • Studio City, CA
  • Licensed in California

A: This forum cannot guide you. Your issue and question is too specific and requires review of all the purchase documents and further I formation. Gather all your documents and schedule a consultation with a real estate attorney.

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