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Purchase & Sale Disputes · Saratoga, California

Real Estate Purchase & Sale Dispute Attorneys in Saratoga, CA

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What Is a Purchase & Sale Dispute?

Understanding Purchase & Sale Disputes in California

Real estate purchase agreements govern some of the largest financial transactions most people or businesses will ever undertake.

Disputes can arise at nearly any stage, from a buyer backing out after removing contingencies, to a seller failing to disclose known defects, to disagreements over who is entitled to a deposit when a deal falls apart. Even well-drafted agreements can lead to litigation when the parties disagree about their obligations or the condition of the property.

Failed transactions often reveal other problems, from realtor fiduciary duty breaches during the sale to CC&R violations discovered after closing.

California law imposes disclosure obligations on sellers in many residential real estate transactions, including disclosure of known material facts affecting value or desirability.

Failure to disclose can support claims for fraud, negligent misrepresentation, or breach of contract, in addition to remedies under the statutory disclosure requirements. When a party breaches a purchase agreement outright, such as refusing to close, the non-breaching party may seek:

  • Damages.
  • Retention or return of the deposit.
  • Specific performance, compelling the sale to proceed, because real property is treated as unique, provided the requirements for equitable relief are satisfied.

Purchase and sale disputes often involve significant sums and tight contractual deadlines for asserting claims or defenses.

Whether you are a buyer who discovered undisclosed problems after closing, or a seller facing a claim over a transaction you believed was handled properly, understanding your rights under the purchase agreement and applicable disclosure laws early can determine whether you recover fully, are compelled to complete a sale, or successfully defend against an unfounded claim.

If the transaction is still open, time matters more than it feels like it does. Some remedies depend on the property still being available, and some depend on steps taken before a deadline in the contract has run. Waiting to see whether the other side comes around is understandable and it can quietly remove options. If you are in a deal that is going wrong, it is worth a conversation this week rather than after it closes or falls apart.

How We Help

What Our Purchase & Sale Dispute Attorneys Do

Review purchase agreements, disclosure statements, and inspection reports to evaluate potential claims or defenses.
Pursue claims for non-disclosure of known property defects, including fraud and misrepresentation claims.
Litigate disputes over earnest money deposits and who is entitled to retain them.
Pursue specific performance to compel completion of a real estate transaction when damages alone are insufficient.
Defend sellers and buyers against claims arising from failed or disputed transactions.
Negotiate settlements that resolve disputes without the cost and delay of a full trial.

Purchase & Sale Dispute FAQs

California requires sellers of most residential properties to disclose known material facts and defects that could affect the property's value or desirability, typically through a statutory disclosure form. Sellers must disclose known issues even if a buyer doesn't ask about them directly, and failing to do so can expose the seller to liability.

You may have claims for breach of contract, fraud, or negligent misrepresentation if the seller knew of a material defect and failed to disclose it. Document the defect, gather your disclosure paperwork and inspection reports, and consult an attorney promptly, as claims are subject to statutory deadlines.

Yes. Because real property is considered legally unique, a seller can seek specific performance, asking a court to order the buyer to complete the purchase as agreed, rather than settling for monetary damages alone, provided the seller has met their own obligations under the contract.

It depends on the purchase agreement's terms and which party breached. If a buyer defaults after contingencies have been removed, the seller may be entitled to retain some or all of the deposit where the purchase agreement contains an enforceable liquidated-damages provision or otherwise permits that remedy. If the seller breaches or a valid contingency excuses the buyer's performance, the buyer is typically entitled to a full refund.

Yes, when the property is a dwelling of one to four units that the buyer intends to occupy. Civil Code §1675 caps a liquidated-damages provision at 3% of the purchase price for that kind of residential, owner-occupied sale, and conditions its validity on compliance with §1677 and §1678. Section 1678 governs what happens when more than one payment is treated as liquidated damages. The statute also requires that the amount kept as liquidated damages actually have been paid, in cash or by check, not merely promised or credited on paper. Outside that residential, owner-occupied framework, Civil Code §1676 sets the general rule for liquidated-damages provisions.

Claims for breach of a written purchase agreement generally must be filed within four years, while claims based on fraud or non-disclosure generally must be filed within three years of discovering the defect or misrepresentation, though the clock and available exceptions depend on the specific facts.

Yes, in many cases. The close of escrow does not automatically bar claims for defects the seller knew about and failed to disclose. Courts generally hold sellers accountable for known material defects even after the sale is complete, particularly where a required disclosure form omitted the issue.

If a contingency, such as financing, inspection, or appraisal, is not satisfied and properly waived or removed, the party protected by that contingency generally has the right to cancel the agreement and receive a refund of their deposit, without breaching the contract.

Purchase and sale disputes often involve significant money, statutory disclosure requirements, and contractual deadlines that can bar a claim if missed. An experienced real estate litigation attorney can evaluate your transaction, protect your deposit and legal rights, and pursue the resolution that best serves your interests.

Why McLellan Law Group

Results-Driven. Personally Invested.

01
Boutique Firm Attention You work directly with an attorney, not a paralegal or case manager. We keep our caseload intentionally small so every client gets full attention.
02
Silicon Valley Focus Based in Saratoga, we know California real estate law and the local court landscape inside out, from Santa Clara County to the broader Bay Area.
03
Proven Track Record From non-disclosure claims to disputed deposits, our attorneys have secured favorable outcomes for buyers and sellers across Silicon Valley.
04
Free Consultation We offer a complimentary initial consultation so you can understand your rights and options before making any commitment.
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Results depend on the specific facts and law of each matter. Prior results do not guarantee or predict a similar outcome in any other case.

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