Amato
Amato v. Downs
Opinion
Opinion
I. BACKGROUND
In 1995, Amato purchased a house in a gated community in Rancho Mirage. On
October 1, 2016, Amato agreed in writing to list the property for sale through Downs for
a list price of $775,000. Amato testified that he believed that the property was worth
more, but he relied on Downs’s view that the house was in such poor condition that it
would be attractive only to investors intending to tear it down and rebuild it. Downs told
Amato that he knew investors who might be interested in buying the property in that
condition, and Amato agreed to Downs acting in a dual agency role for the transaction,
representing both buyer and seller.
On October 3, 2016, Downs presented Amato with a purchase offer from the
eventual buyer, Bruno Lemay. After a series of counteroffers, Amato and Lemay agreed
on a sale price of $750,000. During escrow, however, Amato concluded that “he had
been duped” after an inquiry from Lemay suggested he did not in fact intend to tear down
the house. Amato attempted to cancel the transaction. Lemay did not agree to do so,
however, and Amato rescinded his attempt to cancel escrow; the sale closed in November