Which Statute of Limitations Applies in Certain Real Estate Related Matters?

Civil Code §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. http://www.courtinfo.ca.gov/opinions/documents/C068878.PDF

In another real estate law related matter, the appellants had an option to purchase real property and claimed the three-year statute of limitations under CCP §338 applied.  Both the trial and appellate courts found the two-year statute of limitations under CCP §339 was the right one because “an option to purchase real property is a contractual right.”  Cyr v. McGovran  (Cal. App. Second Dist., Div. 6;  April 17, 2012) 204 Cal.App.4th 1471. http://www.courtinfo.ca.gov/opinions/documents/B231155.PDF

DISCLAIMER: Because of the generality of this blog post, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.