Real Property Litigation

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propertyThe courts continually resolve real property disputes between buyers, sellers, contractors, lenders and all parties involved in any real estate transaction. Examples of such litigation cases this firm has handled include the following:

Contractor Fraud

Contractor induced client to build using contractor’s services by giving inflated budgets to appraisers for two proposed projects. The result of inflated appraisals did cause the client’s reliance that the building projects being offered were very good investments. At completion of building, final appraisals showed value of the two properties built at $250,000.00 less than initial appraisals. This firm sued contractor for fraud and obtained a non-dischargeable judgment for client in the amount of $250,000.00 as well as punitive damages of $250,000.00 also awarded by the court.

Defective Performance By Contractor

Clients complained work performed by their contractor in building a residence for them was defective in that the basement foundation leaked when it rained, leaving water on the basement floor. Clients sued and having already made necessary repairs to the basement on their own, obtained settlement wherein the contractor agreed to build at his own expense a garage for the premises.

Seller Fraud

Clients complained of sinking soil under a four plex they purchased from the seller that had knowledge of the condition that created significant costs to sustain the foundation of the premises from deteriorating further. After motions for summary judgment by the defendant were lost, he agreed to settle by payment to the clients of damages complained of for the necessary repairs.

Seller Enforcement

Clients had leased their residence for nearly two years on a lease option agreement that allowed them a favorable purchase price on or before the end of the term of the agreement. Three months before the two years were over the clients decided to buy the premises and notified the landlord who declined to sell at the original purchase price offering further costs to be paid to allow the sale. The clients sued for breach of contract and for damages amounting to the fair market value of the home plus claimed fraud alleging the landlord never intended to sell at the agreed price invoking a claim for punitive damages triple the value of the home. Upon receipt of the complaint the landlord immediately sold the residence to the clients to dismiss the suit.

Additional information

Contractor Fraud

Client, real property investor, used services of a fraudulent contractor who agreed to build to residences for the client and in the course of that dealing, gave appraisers inflated budgets with actual lower budgets going to lenders. Result of contractor actions were inflated appraisals that induced client into the deals offered by the contractor. When houses were completed finished appraisals determined houses had much less value than original appraisals. Sales prices with completed appraisals would not produce a profit for the client. Rex sued for the investor and won without trial, award of $250,000.00 principle damages and $250,000.00 punitive damages.

Defective Performance By Contractor

Contractor built home for clients and left defects in basement foundation causing water to leak onto basement floor. Rex sued contractor for breach of contract in defective workmanship and performance. Case settled without trial and contractor cured defects plus built additional garage for the clients.

Seller Fraud

Clients unknowingly purchased duplex with sinking soil under premises that subsequently caused cracks and defects in walls of duplex. With existing evidence Rex Bushman sued sellers for fraud in omitting material representations of the defective soil known to the sellers prior to the sale and withheld from buyers at time of sale. With favorable motion rulings sellers settled by payment of significant damages to the clients.

Seller Enforcement

Seller sold option and lease to inhabit premises owned and when buyer, client, timely gave notice they would exercise option to purchase, seller denied ability to sell subject real property at contract price previously agreed to. Rex Bushman sued for specific performance of the purchase price and without going to trial, seller agreed to sell at agreed price rather than litigate to loss on the contract terms.

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