Partner Christopher Charles and Davis Miles McGuire Gardner, PLLC (DMMG) recently achieved a noteworthy victory for their real estate client in a purchase contract dispute. Late last year, the buyer and seller entered into a purchase contract concerning the sale of a $450,000 property in North Scottsdale.
After the buyers’ due diligence period expired, the buyers requested an additional inspection to further investigate the property’s condition. The seller declined the buyers’ request and instead, requested that the buyers sign the loan documents and close escrow on the transaction within the agreed-upon time frame.
Put simply, a dispute arose between the parties regarding their respective obligations in the transaction, and the buyers filed a lawsuit against the seller for breach of contract and specific performance. The buyers also filed an Application for Temporary Restraining Order requesting that the court immediately compel the seller to complete the transaction.
After receiving the lawsuit, the seller engaged DMMG to defend her property rights. Within days of accepting service of the lawsuit for the seller, Mr. Charles filed an Answer and Counterclaim against the buyers for breach of contract and damages, including treble damages for the buyers’ wrongful recordation of a lis pendens against the property. Furthermore, Mr. Charles filed an Application for Provisional Remedies, requesting an order from the court allowing the seller to immediately garnish and attach the buyers’ non-exempt assets, in order to satisfy the seller’s anticipated judgment in the amount of $64,000.00 against the buyers.
Shortly thereafter, the parties participated in a private mediation. At mediation, Mr. Charles successfully persuaded the buyers to capitulate and dismiss their lawsuit against the seller. As a result, and within only 10 days of accepting service of the Complaint, Mr. Charles obtained a complete dismissal of the lawsuit and a release of the lis pendens.
The above result is not only great news for DMMG’s client, but it is also great news for the Valley’s real estate market. Three years ago, lawsuits like this were rare because there was no equity in most properties worth fighting over. But many properties in Maricopa County have experienced between 20% to 30% appreciation in the last 15 months. As a result, many properties once again have equity!
Please visit Mr. Charles’ attorney page at davismiles.com for additional materials regarding seller’s property rights. Or call us at 480-733-6800 to schedule a consultation with Mr. Charles.