Step 5 of real estate non-disclosure and real estate fraud. As Los Angeles real estate attorneys who actively litigate non-disclosure claims we find that if the dispute is not resolved at mediation it will take a formal action to get a resolution.
After mediation, the next step is either filing a court action or initiate an arbitration. This all depends on whether or not the parties signed off (initialed) the arbitration provision in purchase and sale agreement. Obviously, if the parties signed the arbitration provision then they must proceed to private arbitration. If not, then you can file a court action. As part of this analysis we also have to consider whether you are filing a claim against just the seller or the listing agent too. If you are just bringing an action against the seller then the analysis is complete by looking at whether or not the parties have agreed to arbitration. If you plan to sue the listing agent, then, because the listing agent is not a party to the purchase and sale agreement, you would have to sue the listing agent in the Superior Court. As a result, it is possible that you could end up with an arbitration against the seller and a state court claim against the listing agent. This is less than ideal. That is why we always recommend that buyers not initial the arbitration proceeding. This also creates a situation for non-mutual collateral estoppel arising out of the binding arbitration proceeding, a situation that I addressed in an article I authored which was published in the California Real Property Journal. Contact us for a copy of that article.
For more information on your real estate non-disclosure or real estate fraud case arising out of a purchase and sale agreement, contact the real estate attorneys at Schorr Law for a free consultation. We can be reached at www.schorr-law.com, firstname.lastname@example.org, 310-954-1877.