Q: I was under contract to buy a home, and now the seller’s agent can’t get a hold of the seller.  What do I need to do?  There is a lot of equity in the home.  Can I file suit?

A: Whenever a good deal starts to go bad, people are often quick to threaten litigation or jump right into litigation.  However, it’s important to note that is usually not the first step.  A potential buyer must always remember to serve an applicable cure notice to the seller after the scheduled close of escrow date, if the seller fails to close.  Under the AAR contract, a buyer must serve a 3-day notice to the seller, before the buyer can take any legal action.  If a lawsuit will file, the entire suit will be predicated upon this one document.  If you fail to serve a valid cure notice, it could cause significant problems.  After the cure notice is served and expired, only then can you file suit, and, if you want, record a lis pendens to cloud title.

By Mark B. Zinman,  Zona Law Group