Jue

The case at bench requires this court to resolve the following question: May a purchaser of real property who learns of potential material misrepresentations about the property after execution of a purchase agreement—but before consummation of the sale—close escrow and sue for damages? Our answer is, “yes.”

I. Factual and Procedural Background

A. Facts

On April 1, 1992, Kenn and Victoria Smiser (respondents) listed their home at 636 Hillgirt Circle in Oakland for sale with Tabaloff & Company, a realtor (Tabaloff). Tabaloff then began active marketing of the home. On April 22, 1992, an article about the home appeared in the San Francisco Chronicle. The article indicated that the home had been designed by Julia Morgan, a celebrated architect whose credits include Hearst Castle. Geoffrey and Charlene Jue (appellants) saw the article and called Tabaloff to make arrangements to see the home. When they toured it appellants were given a brochure which indicated that it was an “Authenticated, Julia Morgan Design, built 1917.”

Appellants made a full price offer for the home, contingent on the sale of Geoffrey Jue’s home. Respondents countered, requiring that the purchase…