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Purchase Disputes and the Implied Covenant of Good Faith and Fair Dealing

Every contract contains an implied covenant of good faith and fair dealing. The basic premise is that the party entering into the contract will not do anything that will negatively affect the other party’s contractual rights. Stated differently, the law requires the parties to do all things reasonably contemplated by the terms of the contract to help accomplish its purpose. In the real estate litigation context, we most often see claims involving a breach of the implied covenant of good faith and fair dealing with purchase and sale disputes. These disputes arise most commonly in the specific performance context where a buyer is alleging that the seller prevented performance and in escrow deposit disputes where a seller is contending that the buyer somehow failed to

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Posted in Purchase and Sale

Back-Up Offers: Negotiation Leverage or Transaction Pitfall?

If you are selling commercial real estate, one of the most important issues you need to consider is whether to accept a backup offer.  For good reason, most standard commercial purchase contracts allow a seller to solicit and accept competing backup offers up through the close of escrow.   As explained below, a seller can obtain substantial benefits from accepting backup offers, but these backup offers also come with a certain amount of risk. By accepting a legitimate backup offer, a seller gains an invaluable bargaining tool with the buyer currently under contract.  If the current buyer is moving too slow with their due diligence, a seller can threaten to cancel the transaction and move forward with a backup offer.  Often times, this threat alone is enough to force the buyer to speed up their due

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Posted in Purchase and Sale

When Does a Mistake Preclude Formation of a Real Estate Contract?

As very active real estate attorneys in Los Angeles, we frequently find ourselves litigating purchase and sale contracts. These disputes necessarily involve an element of contract interpretation –even when the parties use the standard form California Association of Realtors contract. Contract interpretation is always dependent upon the particular case. Sometimes we are asked to litigate the meaning of a particular clause or a particular sentence while other times we are brought in to enforce the entire contract (generally through claims for specific performance) or to negate the contract (by defending a specific performance claim). The role of a mistake plays in contract formation depends on whether the mistake is unilateral (one-sided) or bilateral (two sided). Generally, a unilateral mistake does not prevent the formation of a

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Posted in Contracts/ Agreements, Purchase and Sale

Avoiding Buyer’s Remorse

Schorr Law’s lead real estate attorney – Zachary D. Schorr – was recently quoted in an article published in newspapers through out the United States in an article focusing on how buyer’s of real property can avoid buyer’s remorse.  In that article, Mr. Schorr offers a few suggestions on how to avoid buyer’s remorse.  His suggestions essentially involved doing thorough investigations of the condition of the property and the terms of your loan. Click on “Don’t be remorseful” to read the article. Zach SchorrMore Posts – Website Follow Me:

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Posted in Purchase and Sale

Buyer Fails to Close Escrow – Liquidated Damages to Seller

Many purchase and sale agreements in California contain liquidated damages provisions.  To avoid uncertainty and litigation if a default occurs in a contract for the sale of real property, the parties to a contract may use a liquidated damages clause to determine the measure of damages in advance.  (Ridgley v. Topa Thrift & Loan Assn. (1998) 17 Cal.4th 970, 977.)  In a contract to purchase and sell residential property, a provision that all or any part of a payment made by the buyer will constitute liquidated damages to the seller on the buyer’s failure to complete the purchase of the property is valid to the extent that payment in the form of cash or check, including a postdated check, is actually made, if the provision

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Posted in Escrow, Liquidated Damages, Purchase and Sale

Zachary D. Schorr’s Expert Appearance on the Dr. Phil Show

Zachary D. Schorr’s Expert Appearance on ABC’s Nightline

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Zachary Schorr Superlawyers

Zachary D. Schorr has been named to the Southern California Super Lawyers (Rising Stars) list for attorneys in Real Estate for 5 straight years - 2012, 2013, 2014, 2015 and 2016. Each year, no more than 2.5 percent of the lawyers in the state receive this honor. In 2016 he was also included as one of the top 100 lawyers in Southern California in this category. The selection for this respected list is made by the research team at Super Lawyers.

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If you are currently involved in a real estate dispute, either commercial real estate or residential, and are looking for a Real Estate Attorney in Los Angeles with a cost-effective, results oriented approach designed to meet your case's specific needs, contact the attorneys at Schorr Law. Our real estate firm has the specific knowledge and experience necessary to get you the best possible results.

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