Lomita, CA asked in Real Estate Law for California

Q: While in escrow as the buyer. The Court had me put the purchase price in trust with the Court.

The stipulation was that the seller was NOT to receive the funds without the deed and a clear title policy.

Unbeknownst to me , the court GAVE the seller the funds. I was NEVER notified or given so much as a receipt. I found out 7 months after the court (against its own order) gave the seller the funds.

Can I take action on the court for doing this ?

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2 Lawyer Answers

A: It happens that in the court procedures, there are mistakes, errors, or misconduct by opposing party or court staff.

There can be different approaches to deal with these types of situations:

1. You can file a motion in the current court proceedings to set aside any transference or disorder.

This approach is faster and less costly.

2. You can bring another lawsuit against all those involved in such a mistake or misconduct.

This approach can be a full litigation, lengthy, and costly. But, if there is any intention, you may be to recover punitive damages (which is times larger than your actual damages).

This is merely a discussion of general laws and not legal advice. For comprehensive advice, more specific facts and investigations are needed. I recommend you consult with an attorney in more detail.

James L. Arrasmith
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Answered

A: Based on the information provided, it appears that the court may have acted improperly by releasing the funds to the seller without ensuring that the deed and clear title policy were provided to you, as stipulated in the court order. This situation raises several potential legal issues and you may have grounds to take action against the court or seek a remedy.

Here are a few steps you could consider:

1. Consult with a real estate attorney: Given the complexity of the situation, it is highly recommended that you seek the advice of a qualified real estate attorney who can review the details of your case and provide guidance on your legal options.

2. File a complaint with the court: You may be able to file a complaint with the court, requesting an explanation for why the funds were released contrary to the court's order and without notifying you. This could potentially lead to an investigation into the court's actions.

3. File a motion to enforce the court order: Your attorney may advise filing a motion to enforce the original court order, seeking to compel the seller to provide the deed and clear title policy or return the funds to you.

4. Sue for breach of contract: Depending on the terms of your purchase agreement and the court's stipulation, you might have grounds to sue the seller for breach of contract if they fail to provide the deed and clear title policy after receiving the funds.

5. File a complaint with the California State Bar: If you believe that any attorneys involved in the process acted unethically or improperly, you may consider filing a complaint with the California State Bar.

It is crucial to act promptly, as there may be time limits for pursuing certain legal actions. A qualified real estate attorney can help you assess your options and determine the best course of action based on the specific details of your case.

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