Seller’s or Buyer’s Broker, Which Statute Of Limitations Applies?

California Civil Code section 2079.4 imposes a two-year statute of limitations on suits brought against a seller’s real estate broker.  The standard buyer-broker agreement form issued by the California Association of Realtors form imposes a two-year limitations period for any legal action against a buyer’s broker.  This case involves claims brought against a dual listing agent.  The Court of Appeal found the two-year period applies to the breach of contract cause of action but that “the discovery rule applies.”  As to the other causes of action, the court stated:  “With regard to the breach of fiduciary duty, fraud, negligence, and negligent misrepresentation actions, we conclude these claims were based on the common law fiduciary duty and did not arise under the buyer-broker agreement.  The applicable statute of limitations govern the timeliness of these claims.”  William L. Lyon & Associates, Inc. v. Sup. Ct. (Ted Henley)  (Cal. App. Third Dist.;  April 12, 2012.) (As Mod. May 11, 2012) 204 Cal.App.4th 1294, [139 Cal.Rptr.3d 670].