Pop Quiz
Quick, test your knowledge of residential real estate law by answering the following question:
What accounts for something like 90% of all litigation involving residential real estate today?
A. Actions for “specific performance” — that is, a lawsuit where either the Buyer or Seller asks the court to compel the other party to consummate the transaction.
B. Banks seeking to collect deficiency judgments from “short sale” and foreclosed homeowners.
C. Lawsuits brought by Buyers to have Sellers return their earnest money.
D. Lawsuits brought by Buyers against Sellers for misleading or incomplete disclosure.
Answer: D.
In light of the explosion in short sales and foreclosures the last few years, that certainly comes as a surprise to many (including me) — I would have put even money on “B.”
But, that’s the word this am from Edina Realty’s General Counsel . . .
