Posted by Rich-CA on January 01, 2009 at 16:02:17:
as the law is not a precision instrument with black and white answers. It would be easier if it were, and lawyers would be less expensive. I am not an attorney but am currently take the CA RE Law course for my license. A contract assignment is not illegal, it is every person’s right to assign their contract as long as all parties agree (that would only be the buyer and the seller). However, a lender will have their own criteria which are also legal to enforce. It has nothing to do with the legality of the seller’s actions. In fact a lender’s requirements while they are legal are not mandated by law but by their own procedures. Just because a lender won’t do something does not mean the person who created the situation broke the law.
Posted by Joe Rodriguez on December 27, 2008 at 17:23:55:
My wife and I recently signed a purchase agreement on a home. Just a few days
before closing, it become known by the mortgage underwriter that the home
was a flip and the loan could not be obtained due to FHA seasoning regulations.
We were never made aware that the home we were purchasing was still in
escrow with buyer #1 (the Realtor’s wife) at the time we signed the purchase
agreement.
Has there been a violation of California Real Estate law, and do we have any
recourse against the Realtor? I would think that it would most certainly be
illegal to open up a second escrow on a property that hasn’t closed the first
escrow, especially without disclosing it in the purchase agreement.