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Be Careful in Executing a Third-Party Easement While under a Contract to Sell: Real Estate Contract Rescinded Because Power Line Easement Executed without Buyer's Knowledge

A buyer was entitled to rescind a real estate contract after the seller negotiated and executed a power line easement without the buyer's knowledge, according to a recent decision from 9 th Circuit. Applying California law, the court held that the easement, which continued to exist for more than...

California Case Provides Primer on Specific Performance/Rescission Issues

Recent Unpublished California Intermediate Appellate Decision in Clement v. Alegre Provides Good Primer on Crucial Specific Performance/Rescission Issues By Mr. William M. Hensley INTRODUCTION In recent months, the California Real Estate Reporter (Matthew Bender)has published some articles I have...

Ballard Spahr LLP: Second Circuit Reverses Bacolitsas Decision in Rare Win for Condo Developers

By Joseph E. Lubinski and Patrick H. Pugh A condominium developer has garnered a significant victory in a dispute with a buyer as the result of a decision by the U.S. Court of Appeals for the Second Circuit. In Bacolitsas v. 86 th & 3 rd Owner, LLC [ enhanced version available to lexis.com subscribers...

Borrower Must File Suit before Foreclosure To Exercise Rescission Rights, Eighth Circuit Holds

By the Ballard Spahr LLP Mortgage Banking Group The Eighth Circuit recently held that a borrower must file suit before foreclosure to exercise rescission rights under TILA. The court now joins the Ninth and Tenth Circuits in holding that notice alone is not sufficient. In Hartman v. Smith, [ enhanced...

TILA Rescission of a Home Loan Does Not Require a Lawsuit within Three Years

A home-loan borrower has three years to seek to rescind the loan because Truth In Lending Act (TILA) disclosures were not made, but this does not mean that the borrower must file a lawsuit within that time. The U.S. Supreme Court reached this conclusion last month in its decision in Jesinoski v. Countrywide...

Supreme Court Holds That TILA Rescission Is Accomplished With Notice Alone

Until last month, courts were split over what steps borrowers must take to rescind a home loan. Some courts had ruled that a borrower simply had to send a rescission notice to his creditor within three years after taking out a loan. Others said the notice alone does not suffice; a lawsuit must be filed...

High Court Rules that Borrowers May Exercise Right To Rescind Mortgage Loans By Providing Notice To Lender of Intent to Rescind Within Three Years of Loan Closing

The United States Supreme Court has issued its long-awaited ruling in Jesinoski v. Countrywide Home Loans, Inc., No. 13-684, 190 L. Ed. 2d 650 (U.S. Jan. 13, 2015), [ enhanced version available to lexis.com subscribers ], resolving a circuit split over the notice requirements that must be complied with...