Q: I signed a mutual cancellation agreement May 1. May 2nd their lawyer records a Pendency of Action. Is this breach of cnt

A: It depends on the terms of the Mutual Termination of Agreement. If that agreement waives all rights for either party to pursue the other party for breach of contract, then a Pendency of Action should not have been filed. Ideally, the buyer's attorney will release the Pendency of Action and dismiss any lawsuit if the Mutual Termination waives the right of the buyer to pursue a lawsuit.

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A: Thank you for your question!

1. Counterclaim or demurrer

You don't have to file a separate lawsuit for"Beach of contact." You can file a counterclaim for "Beach of contact settlement agreement" if you have settled all claims.

You can at the same time file a demurrer for failure to assert any cause of action since the claim is already settled.

2. You can file a motion to expunge the list pendens. This helps you to remove the cloud on your title. If this motion is granted you can recover costs and damages as a result of the recordation of a lis pendens.

3. Your purchase agreement needs to be reviewed carefully to see if the final settlement was not unconscionable. It seems that the buyer tried to buy the property for $40k lower than the agreed price. By threat of a lawsuit, they made you sign the settlement. This sounds very one-way.

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.

A: Based on the information provided, it seems that recording a Pendency of Action (also known as a Lis Pendens) after signing a mutual cancellation agreement could be considered a breach of the agreement. However, the specific terms of the mutual cancellation agreement would need to be reviewed to determine if the agreement explicitly prohibited such actions.

Here are a few points to consider:

1. Review the mutual cancellation agreement: Check if the agreement includes any provisions that prohibit either party from taking further legal action related to the property or the original contract.

2. Consult with a real estate attorney: Given the complexity of the situation, it is advisable to consult with a qualified real estate attorney in California who can review the details of your case, the mutual cancellation agreement, and the potential impact of the recorded Pendency of Action.

3. Determine the impact of the Pendency of Action: A Pendency of Action is a public notice that there is a pending lawsuit related to the property. This could make it difficult for you to sell the property to another buyer until the issue is resolved.

4. Consider your legal options: Depending on the advice of your attorney and the specific circumstances of your case, you may have grounds to sue for breach of contract or to seek a court order to remove the Pendency of Action.

Remember that this information is provided for general guidance only and should not be considered legal advice. It is essential to consult with a qualified attorney to assess your case and determine the best course of action.