Whenever we are presented with a new specific performance case on behalf of a buyer we always recommend that we immediately file a lawsuit so that we can record a lis pendens and help prevent the sale of the property to a third party without our buyer client’s knowledge. Sometimes, however, there are situations where the seller has already sold the property out from under the buyer without the buyer’s knowledge. In those circumstances, the question becomes whether the buyer has the right to enforce the purchase and sale contract and seek the property from the new buyer. In other words, what are the buyer’s rights when the seller conveys property to a third party?
The answer is – it depends on the status of the third party transferee (recipient). If the third party transferee (the new owner) is a bona fide purchaser, who has paid value for the property without notice of the prior purchase and sales agreement, then the buyer likely cannot obtain a judgment for specific performance against that bona fide purchaser.
However, if the new buyer is not a bona fide purchaser, the buyer can obtain a decree of specific performance against the new owner.
At Schorr Law, our real estate attorneys have experience with many types of specific performance matters. We even have experience litigating the status of whether a buyer is a bona fide purchaser. To inquire about a free 30-minute consultation, contact us today by filling out the contact us box on the right hand side of this page, by calling 310-954-1877 or by emailing us at firstname.lastname@example.org
By Los Angeles Real Estate Attorney Zachary D. Schorr.