Jack Thomas Cairns Jr's Answers

About Foreclosures

Legislation passed in California last year added a new Section 1161b to the Code of Civil Procedure, which requires a foreclosing lender to give sixty (60) days notice to vacate to tenants or subtenants of a dwelling. There is much variation among banks, just as there is among properties but, in many cases, banks will offer a tenant some move-out money just to save the cost of an eviction and to gain certainty as to when they will get possession of the property. It's certainly worth asking.

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Is this scenario considered to be a preference?

I am a California lawyer, not admitted to practice in Connecticut. In general, however, there is both good news and bad news for you. Part of the definition of a preference under the Bankruptcy Code is that it must be a payment made on account of an antecedent debt. If the money you received was from a "new account", it was not received by you on account of an existing debt and cannot be considered a preference. The bad news is that, if the money is a true "security deposit", you may be deemed...

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Propective buyer of bank owned new construction in NM

I am a California lawyer, not admitted to practice in Mew Mexico, so take this for what it's worth. I think your best protection would be a policy of title insurance with a mechanics lien endorsement. Alternatively (or in addition) you could ask the bank for a written indemnity against mechanics lien claims. If the bank did its job properly, it should have insured the priority of its construction loan over any claims of lien, so a new title policy with lien endorsement or indemnity should not...

What are the ramifications for breaking a real estate sales agreement?

I am a California lawyer, not admitted to practice in Georgia. Under general principles of common law, however, you may be liable for breach of contract if you fail to go through with the sale and the buyer is ready, willing and able to perform his part of the bargain. The measure of damages for breach of a contract to sell real estate is generally the difference between the contract price and the fair market value of the property. Alternatively, the buyer might elect to sue for what is called "...