Purchase Sale Dispute Attorney

Rokita Law P.C. represents buyers, sellers, investors, and businesses in disputes over real estate purchase agreements. As a purchase sale dispute attorney in Newport Beach and Beverly Hills, we handle failed closings, deposit fights, undisclosed defects, and breaches of the purchase contract. Attorney Amanda Rokita has practiced in California since 2017 and has represented clients in complex real estate disputes throughout Southern California.

What Is a Purchase Sale Dispute?

A purchase sale dispute is a disagreement between a buyer and a seller over a contract to buy or sell real estate. It can come up at any point: after the offer is accepted, during escrow, at closing, or years after the keys change hands. Someone backs out. Someone says the other side missed a deadline. The seller is accused of hiding a problem with the property. Or the buyer and seller each claim the deposit.

These disputes are different from a routine real estate transaction, where both sides perform and the deal closes. They are also different from real estate fraud, which centers on deliberate deception, though a purchase dispute can include a fraud claim. A purchase sale dispute is about what the contract required, who did or did not do it, and what the other side owes as a result.

The stakes are usually high. A large deposit may be at risk, a property may be tied up for months, and a seller who has already moved on may be left with nothing. Early decisions matter, and a few of them are hard to undo.

Purchase Sale Disputes We Handle

We represent both buyers and sellers, whether you are enforcing the contract or defending against a claim. Our work includes:

• Buyer or seller refusing to close or breaching the purchase agreement
• Earnest money and deposit disputes
• Specific performance claims to force a sale to go through
• Disputes over contingencies, deadlines, and contract cancellation
• Seller nondisclosure and misrepresentation of property conditions
• Disagreements over inspections, repairs, and credits
• Escrow disputes and conflicting instructions to the escrow holder
• Lis pendens filings and fights over removing them
• Commercial and investment property purchase disputes
• Claims against sellers, brokers, or other parties after closing

Deposit and Cancellation Disputes: The Most Common Purchase Sale Fight

Most purchase sale disputes come down to one question: who gets the deposit? A buyer cancels during escrow and asks for the money back. The seller says the buyer missed a deadline and the deposit is theirs. The escrow holder is stuck in the middle, and it generally will not release the funds without signed instructions from both sides or a court order.

The answer usually sits in the contract. Standard California purchase agreements set deadlines for removing contingencies, and a buyer who cancels on time can often recover the deposit. A buyer who removes contingencies and then walks away may be in breach. Many contracts also include a liquidated damages clause, which limits the seller’s damages to the deposit. For a one-to-four unit home the buyer plans to live in, California law (Civil Code section 1675) sets conditions for those clauses, including a cap of three percent of the purchase price for the deposit to be presumed valid.

When the escrow holder cannot sort it out, the dispute can end up in court, sometimes through an interpleader action where the holder asks a judge to decide who gets the money. We review the contract, the notices, and the timeline to figure out where you stand, then push for the return or release of the deposit, or defend against the claim.

Why Purchase Sale Disputes Need an Attorney

These cases turn on documents and dates. The purchase agreement, every addendum, each notice sent or missed, the inspection reports, the disclosures, the escrow file, and the emails and texts between the parties all matter. A deadline missed by a day can decide who wins, and a casual text can become evidence.

The contract may also set the rules for the fight. Many purchase agreements require mediation before anyone files suit, and skipping that step can cost you the right to recover attorney’s fees. Others include attorney’s fees provisions that can make losing expensive.

We build the record early, identify your strongest position, and tell you honestly where the weak points are. Many purchase sale disputes settle once the other side sees a well-prepared case. When they do not, we are ready to litigate, whether that means a breach of contract claim, a demand for specific performance, or a defense against one.

Serving Newport Beach, Beverly Hills and nearby

Real estate in Los Angeles and Beverly Hills is expensive, and so are the disputes that come out of it. A failed closing on a high-value home or a development parcel can mean a seven-figure problem. Our Beverly Hills office represents buyers, sellers, and investors across Los Angeles County, and our Newport Beach office does the same for clients throughout Orange County. Wherever the property sits in Southern California, we can help you protect your deposit, your deal, or your defense.

Talk to a Purchase Sale Dispute Attorney

If a deal has fallen apart, a deposit is being held, or you think the seller hid something that should have been disclosed, talk to us before you send another message or sign anything. Call Rokita Law P.C. at (888) 765-4825 or schedule a consultation to go over your situation. Past results do not guarantee future outcomes.

Purchase Sale Disputes in Los Angeles and Orange County: What to Know

A purchase sale dispute is usually filed in the superior court of the county where the property sits. Property in Beverly Hills or the city of Los Angeles falls under Los Angeles County Superior Court, including the Stanley Mosk Courthouse downtown. Property in Newport Beach falls under Orange County Superior Court, where the Central Justice Center in Santa Ana hears many civil cases.

Deadlines matter in two ways. Inside the transaction, the contract’s contingency and notice deadlines often decide who is in breach. After the dispute arises, California’s statutes of limitations apply. A claim on a written contract generally has a four-year window, and fraud claims generally have a shorter one, with discovery rules that can affect when the clock starts. The right deadline depends on the facts, so do not wait to find out.

Sellers are required to make certain disclosures about a property’s condition under California’s Transfer Disclosure Statement rules, which begin at Civil Code section 1102. When a seller leaves out a known defect, the buyer may have claims for misrepresentation or concealment, even if the sale has already closed.

A buyer who sues to enforce a purchase agreement can often record a lis pendens, a notice of pending action that tells future buyers and lenders the property is in litigation. A seller who believes the filing is improper can ask the court to remove it. Because a lis pendens can freeze a property, courts look closely at these requests, and both sides should get advice before using or fighting one. Records and judgments affecting title are recorded with the Los Angeles County Registrar-Recorder/County Clerk for Los Angeles and Beverly Hills property, or the Orange County Clerk-Recorder for Newport Beach and other Orange County property.

Helpful resources

• California Civil Code section 1675 (liquidated damages in residential purchase agreements), the statute that sets conditions for deposit forfeiture clauses.
• California Code of Civil Procedure section 405.20 (lis pendens), the official rule on recording a notice of pending action.
• California Courts, civil lawsuit basics, the state’s self-help guide to how civil cases work.

Related pages from Rokita Law

• Real Estate Law
• Real Estate Transactions
• Real Estate Fraud
• Property Dispute
• Quiet Title Litigation
• Breach of Contract
• What Is a Breach of Contract?
• Civil Litigation Attorney
• Real Estate Attorney in Beverly Hills
• Real Estate Lawyer in Newport Beach

Frequently Asked Questions

What is a purchase sale dispute?

A purchase sale dispute is a legal disagreement between a buyer and seller of real property over the terms, performance, or outcome of a real estate transaction. Common triggers include failed closings, withheld deposits, undisclosed defects, financing problems, and broken contract terms.

Can I get my earnest money deposit back if the deal falls through?

It depends on why the deal fell through and whether you canceled within your contingency period. If you timely invoked a valid contingency, such as an inspection, appraisal, or loan contingency, you can usually recover the full deposit. If you canceled after removing contingencies, the seller may be entitled to keep the deposit as liquidated damages.

What are the seller’s disclosure obligations in California?

California law requires sellers of residential property to complete a Transfer Disclosure Statement (TDS) covering all known material facts about the property’s condition. Sellers must also provide a Natural Hazard Disclosure and, in some cases, additional local disclosures. Failing to disclose a known defect can expose the seller to rescission, damages, or both.

What remedies are available in a purchase sale dispute?

Remedies can include monetary damages (out-of-pocket losses, lost profits, or the difference in property value), return or forfeiture of the deposit, specific performance (a court order to complete the sale), rescission (unwinding the deal), and in some cases attorney’s fees under the contract’s fee-shifting provision.

How long do I have to file a lawsuit over a purchase sale dispute?

For breach of a written contract, the statute of limitations in California is generally four years (Code of Civil Procedure section 337). Fraud claims carry a three-year window from the date of discovery. Other claims, such as negligence, may have shorter deadlines. Waiting too long can bar your case entirely.

Do I have to mediate before suing?

Most standard California residential purchase agreements include a mediation clause. If your contract has one, you generally must attempt mediation before filing a lawsuit. Skipping mediation can cost you the right to recover attorney’s fees later, even if you win the case.

What is specific performance in a real estate dispute?

Specific performance is a court-ordered remedy that forces a party to complete the transaction as agreed. Courts grant it in real estate cases because each piece of property is considered unique and money damages may not be an adequate substitute. Buyers typically seek specific performance when a seller refuses to close.

Can I sue for undisclosed property defects after closing?

Yes, if the seller knew about a material defect and failed to disclose it before closing. California’s disclosure laws are designed to protect buyers, and a seller who hides problems such as foundation issues, water damage, pest infestations, or unpermitted work can face a lawsuit for damages or, in some cases, rescission of the sale.

What happens if the buyer’s financing falls through?

If the buyer has a loan contingency in place and the lender denies the loan, the buyer can usually cancel the contract and recover the deposit. If the buyer already removed the loan contingency before the denial, the seller may claim the deposit. The timing and the specific contract language control the outcome.

What if there are defects found after purchase that weren’t disclosed?

You may have a claim against the seller for failure to disclose, against your home inspector for negligence, or against both. The strength of the claim depends on whether the seller knew about the defect, whether it was visible during a reasonable inspection, and how much it costs to fix. California law also imposes a duty on buyers to conduct their own reasonable investigation, so the analysis is fact-specific. Speaking with a breach of contract attorney can help you understand your options.