Sold Under Duress
I heard from another buyer at the courthouse the other day, that if you purchase a house from a seller and the seller comes back later and says that they sold under duress, that the contract can be reversed in CA, the property redeemed (without paying any expenses for repairs). Does anyone know about this?
Thanks,
Robert
[addsig]
At some levels people under duress can not sign contracts.
Hence there is the possibility that the contract would be void.
At the same time this could stated about any contract. Hence you need to establish that the person understand they know what they are doing and are of sound mind.
John
[addsig]
proving duress if pretty difficult.
So don't hold a gun to the wife's head while the husband signs.
Quote:
On 2004-06-06 15:44, cjmazur wrote:
proving duress if pretty difficult.
So don't hold a gun to the wife's head while the husband signs.
robert
[addsig]
John,
Thanks. That establishes a little more reality for me. I think this person was just afraid of preforclosures, or was trying to scare me off of them. I'm not sure which.
I know that Robert Shemin recommends that you have the buyers write back in their own handwriting what that they understand the terms and to list the terms. I suppose doing that would handle the "duress" issue, but seems a bit over the top to me.
Thanks,
Robert
[addsig]
Generally duress is only a problem if you are the cause of the duress. As CJ pointed out. Courts are very reluctant to overturn contracts. The duress of "if I didn't do this deal I was going to loose my house" doesn't count as duress. The pressure brought to bear on the seller has to be against the public policy in its own right.
Your friend has a point when "duress" relates to preforeclosure in CA. Things have to be handled according to the law, specifically CC1695.
I use several documents which would (may) help should a former seller decide to pull me into court with "duress" as the basis for the trial.
Quote:
I use several documents which would (may) help should a former seller decide to pull me into court with "duress" as the basis for the trial.
Sammy,
Do you mind giving me an idea of what kinds of documents you use?
Thanks,
Robert
[addsig]
Sammy,
You're right. It looks like you have to be extra careful with preforclosures in CA.
http://www.leginfo.ca.gov/cgi-bin/displaycode?section=civ&group=01001-02000&file=1695-1695.17
Thanks for the information and heads up.
Robert
[addsig]
Sammy,
I was watching this thread knowing that anyone outside of the state of California should not really be giving advice concerning duress statutes in CA.
Duress is the use of physical force or mental pressure by one party to make the other party agree to the contract. The use of duress makes the contract voidable by the party put under duress.
I know you and I have invested in CA, if you don't cross every t, dot every i, this is one state that does not give much latitude.
Thank you for posting.
John $Cash$ Locke[ Edited by JohnLocke on Date 06/06/2004 ]
John,
So, does this mean that when you are first getting started, preforeclosure is maybe not something to get into until you have a little more experience? And a large bank of attorneys
Thanks,
Robert
[addsig]
Robert,
California is a great state to invest in and I would not discourage anyone from investing there.
However, you really need to be on top of the statutes (the law). Make sure an attorney reviews your paperwork to make sure you are in compliance with the laws there.
Or as I like to say "make sure your first deal isn't your last deal."
I would say even a bird dog just starting out can make money there, investors are always looking for deals.
I have one student there who recently pulled down $80K on his first Subject To deal, he found it himself, but I bet he would have gladly paid a bird dog some serious money had they found the deal for him.
If someone would feel a little more comfortable just starting out, then work within their comfort level, it does not take long to jump in with the big dogs.
John $Cash$ Locke[ Edited by JohnLocke on Date 06/06/2004 ]
John,
Thanks. I appreciate your candor.
Robert
[addsig]
Robert,
I want to add to what John said.
Before you use any document be sure it is reviewed by a paid competent California Real Estate lawyer. Perhaps you can find one at a Real Estate club in your area.
Also spend a few dollars and get a consultation with them so that they can review what you plan to do. This way they can lay out a step by step plan of action when you deal with sellers.
Cashman,
Thanks. That task is actually on my to do list. Unfortunately, not doing that task has kept me from doing any deals yet. I guess that needs to take a higher priority doesn't it?
Thanks,
Robert
[addsig]
From the advice of my lawyer (Washington State) I have included a paragraph in my contracts that states that the seller is aware that I’m buying the property below market value and I intend to re-sell it at a profit….
Something about making sure my buyer doest sue me later down the road claiming economic duress, or if they do try and get me my contract should hold up in court.
Not sure if that is along the lines you were thinking or not.