SBJLG Successfully Obtains Closure of CalBRE Inquiry
Against Listing Agent
Recently, two (2) buyers purchased vacant land from a seller without investigating the property’s development potential prior to the close of escrow. The buyers performed their investigation after the close of escrow, and determined that the land, which does not have sewer access, lacks the sloping required to house a septic system, essentially, rendering the property undevelopable for residential purposes. The buyers then filed a complaint against the listing agent with the Bureau of Real Estate (“CalBRE”). They claimed that they purchased the property in reliance on an alleged misrepresentation by the listing agent that the property is developable and meets the required specifications for a septic system. SBJLG was able to show that the agent had properly and expressly recommended to the buyers that they investigate the feasibility of their desired use of the property prior to the close of escrow, necessarily including its development potential. CalBRE closed the investigation. Shannon B. Jones, Nick Fine, and Zach Scalzo worked on this matter.