Civil Litigation
Murtaugh LLP represents property owners, investors, and businesses in real estate litigation involving transaction disputes, ownership disputes, and contract disputes. These matters often involve commercial properties and complex ownership structures.
Transaction disputes may arise from the purchase or sale of property, including disagreements over terms, disclosures, and performance. Ownership disputes can involve co-owners, partnerships, or competing claims to property interests. Contract disputes frequently involve leases, development agreements, and other real estate-related contracts.
The firm works with clients to address these issues with a clear understanding of both the legal framework and the practical impact on the property and the client’s broader objectives.
Real estate litigation services include:
The goal is to resolve disputes in a way that protects the value and use of the property while aligning with the client’s long-term plans.
We frequently advise clients on matters related to this practice area. Below are answers to some of the most common questions we receive.
California imposes broad disclosure duties on sellers of residential property and their agents, both statutory disclosures under Civil Code section 1102 and related provisions, and a common-law duty to disclose known material facts affecting the value or desirability of the property that are not reasonably observable to the buyer. Failure to disclose a known material defect can support claims for fraud or concealment and negligent misrepresentation, and – significantly – can be grounds for rescission, unwinding the sale and restoring the parties to their pre-transaction positions in addition to damages. The limitations period for fraud-based claims is three years from discovery. (Code of Civil Procedure § 338(d)). An "as-is" clause does not cure a failure to disclose: it allocates the risk of defects the buyer could discover, but it does not relieve a seller of the duty to disclose known, concealed material conditions.
Any co-owner of real property can compel partition to end the co-ownership. Under the Partition of Real Property Act, effective January 1, 2023, the court first determines the property's value by appraisal, and the co-owners who did not seek a sale have the option to buy out the interest of the owner who did, at that appraised value, before any sale proceeds. If no buyout resolves the matter, the court decides whether to divide the property in kind or sell it; but because most modern parcels (for example, single-family homes and condominiums) cannot be divided in kind, the court usually orders partition by sale.
After a sale, the court will not necessarily split sale proceeds by percentage of title. Through the partition accounting (Code of Civil Procedure § 872.140), it can adjust the distribution to account for unequal contributions - crediting an owner who paid more than their share of the mortgage, taxes, insurance, maintenance, or improvements. And because a partition is treated as undertaken for the common benefit of all owners, attorneys’ fees and the costs of partition are generally apportioned among the co-owners in proportion to their interests (§ 874.040) – a notable departure from the usual rule that each side bears its own fees.
Whether you have a specific matter in mind or just want to explore your options, our attorneys are here to help. Reach out to learn how we can assist you.
