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My son is closing escrow on a condo in CA. The builder due…

My son is closing escrow...
My son is closing escrow on a condo in CA. The builder due to an inspection from the city removed one sheet of drywall from one side of his condominium because the stairwell was not wide enough for the city. This illuminated a sound barrier that he thought he was getting when he bought the condo. By the way it is new construction. The builder instead of being able to move the stairway to illuminate the need to remove the drywall decided it was cheaper to their benefit to go ahead and remove the drywall. He is supposed to close escrow on Monday. The builder sent The builder sent over a disclosure that ate the required him to sign or they were going to pull out of the deal. They claim that they have that ability if there is a dispute prior to closing built into their contract. We asked the builder to remedy the situation and at first they said yes and now late today they declined. He did sign the disclosure which states that the builder does not believe it impacts the value of his unit.Do we have recourse after the closing to litigate this with the builder? The disclosure only states fax and assumptions on the builders part that there is no reduced value. However his condominium is one of only four out of a proximally 20 they closed that have this issue.
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Customer reply replied 3 months ago
I dictated this question so I apologize for any errors.
Customer reply replied 3 months ago
I have never received an answer
Answered in 22 hours by:
3/25/2018
Josie-Mod
Category: CA Real Estate
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socrateaser
socrateaser, Attorney
Category: CA Real Estate
Satisfied Customers: 40,074
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Hello,

I am a member of the State Bar of California and a licensed real estate broker.

Because you have been made aware of the substantial change in the property condition during escrow, you could cancel the deal. If the seller/builder, has contract terms that permits the seller to cancel the deal, unless you accept the property as constructed, then the builder can cancel.

If you accept the property in its altered condition, then you won't be able to claim that any defect was unknown to you, and that may prevent you from obtaining a favorable outcome from a court. The problem here is that a sound barrier is far more subject to argument as to its defective nature, than something more obvious, such as a foundation crack or leaking windows/doors.

If I were representing you, I would probably push the developer (who wants to sell the property) into mediation or arbitration to try to force a settlement of the claim. The cost of hiring a lawyer to deal with your complaint would probably be greater than to provide additional insulation in the condo to remedy the "defect."

But, if I couldn't budge the developer, then I would tell it to cancel the deal, and refund your down payment, because the subject matter of the deal has changed, and the property promised is no longer the proerty being purchased.

I hope I've answered your question. Please let me know if you require further clarification. And, please provide a positive feedback rating for my answer (click 3, 4 or 5 stars) -- otherwise, Justanswer retains your entire payment, and I receive nothing for my efforts in your behalf. Note: If you cannot find the rating button on your webpage, please just type in your rating in a response to this note, and customer service will apply the rating for you.

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socrateaser
socrateaser, Attorney
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Satisfied Customers: 40,074
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