Watch out for house sale contract disputes: How to avoid property damage

Watch out for house sale contract disputes: How to avoid property damage

Case Overview：

This case involves two parties: John, the seller, and Anna, the buyer. The two parties signed a house purchase and sale contract, stipulating that the buyer would purchase a house located in California from the seller for US$450,000. The contract clearly states that the seller must complete all repairs to the house before handing over the property. However, before closing, the buyer discovered that the house had serious structural problems that had not been disclosed when the contract was signed. The buyer refused to pay the remaining balance and the seller demanded that the buyer fulfill its contractual obligations. The two parties had a dispute, so the buyer hired our law firm to represent the case.

Legal Response:

Consultation and evidence gathering:
Our team of lawyers first conducted a detailed preliminary consultation and learned in detail about the buyer’s home buying experience, contract terms, current status of the house, and other relevant information. Through this consultation, we confirmed the basic circumstances of the case and developed a preliminary legal strategy.

Gather evidence:

1. Home inspection reports:
We assisted the buyer in commissioning a professional home inspection agency to conduct a full inspection of the home and obtained a detailed home condition report, which proved that the home indeed had serious structural problems.
2. Contract review:
We have carefully reviewed the contract for the sale and purchase of the house signed by both parties, especially the relevant clauses regarding the condition of the house and maintenance responsibilities.
3. Records of correspondence:
We collected records of all communications between the buyer and the seller, including emails, text messages and phone calls, to prove that the seller concealed the true condition of the home at the time of the contract.

Transnational legal cooperation:

On behalf of the buyer, we conducted preliminary negotiations with the seller, asking the seller to solve the problems existing in the house or refund part of the purchase price. However, the seller refused to accept any solution, insisting that the buyer fulfill his contractual obligations. We then sent a formal lawyer's letter to the seller, clearly informing it of its legal responsibilities and possible legal consequences, and asking it to resolve the problem within the specified time.

Legal procedure and execution of litigation:

After fruitless negotiations, we filed a civil suit in the California State court against the seller, demanding the rescission of the contract, the refund of the purchase price already paid and compensation for economic losses. All the evidence collected, including home inspection reports, contract texts, correspondence records, etc. were presented in court to strongly prove the seller's breach of contract. After several rounds of court hearings, the court finally found that the seller had concealed the true condition of the house when the contract was signed, which constituted fraud. The court ruled that the contract should be terminated and the seller should refund the money already paid by the buyer for the purchase of the house and compensate the buyer for the economic losses caused by the house problems.

Result and Recovery:

The case was finally brought to a happy conclusion. The buyer not only successfully rescinded the contract, recovered the money already paid for the purchase, but also obtained the corresponding economic compensation. In addition, the success of this case also provides a valuable warning to other home buyers, reminding them to be careful in the purchase process to ensure the true condition of the house.