Lost money on your real estate deal?

As we've seen real estate markets plummet across the country, many real estate investment projects have failed, or will fail if they haven't already? If you invested money in real estate, you may be able to get your money back. The law treats any sort of investment as the sale of a security, which imposes many legal obligations and responsibilities on the seller.

If you were the buyer, the seller likely didn't properly notify the state in which you live that he or she sold a "security". The seller might not have properly disclosed all the risks of the investments. Corporations code section 25504 also imposes "joint and several" liability on all those involved -- meaning, if the person with whom you dealt is no longer around, his or her partners must pay for his code violations. Also, accounting or legal professionals involved in the offering may have liability, and may have insurance that covers the liability.

Lesson: If you've lost money in a real estate investment, like many have, don't give up your fight to get your money back!

Is your indemnity contract too broad?

A California appellate case recently found a consultant had to pay the developer's defense fees arising from an HOA v. Developer construction defect action. "All" the fees, and even though the jury found the consultant did nothing wrong (was not negligent). The indemnity provision was too broad, the court found.

The Lesson -- be careful that what you are signing does not impose a legal liability down the road that you hadn't planned on, or insured against. Draft your indemnity provisions with this new case in mind so you don't get stuck holding bag.

Welcome to the Blogosphere

First, about me... I've practiced law for almost 17 years now, wow how times flies. Although I have litigated disputes, I primarily act as "general legal counsel" for my clients, fielding questions daily from the simple or mundane to the complex and life changing. Having started, owned and sold a small private marketing and distribution company, I bring much more than 16 years legal experience to the table -- I bring real world experience that, I like to think, makes me a valuable asset to my clients in their quest to run a successful business.

So it starts... welcome to the Blogosphere!!!

John R. Browning, Esq.
949 833.8838
jbrowning@rrjlaw.com
Russakow, Ryan & Johnson
Irvine, California