Dispute with realtor

[Changseok Kim]

Hello BP members, 

I purchased a 3 bedroom house for rental with cash and just finished the rehab. However, it turns out during the rental inspection that this house can be only listed as 2 bedrooms because one small room does not meet the requirement of habitable space. It was listed as 3 bedroom house in MLS when I purchased it. I complained about this to my realtor and the seller's agent, but they say that the house has been historically listed as 3 bedroom house and showed me the previous MLS listings of this house. (Interestingly, the MLS listing indicates that there are 1 bedroom upstairs and 2 bedroom on main floor, however, this house actually has 2 bedroom upstairs and 1 bedroom on main floor. )

Because of the inspection result, I cannot rent it out or sell it as 3 bedroom house anymore. There is no space to add more room in this house, and even if there is, it will cost a lot to add one more room in this house. 

Is there anything that I can do in this situation?

Thank you, 

Chang

[Nathan Gesner]

You could try to sue, but most states say it is the Buyer's responsibility to confirm the information provided and to know what you are buying. For example, when a REALTOR lists the house for sale, they don't have a professional determine the square footage of the home. They use public records and/or the information provided by the seller. It's your responsibility to measure and determine how big the home is.

If they were somehow lying or hiding the truth, then you may have a case. If they bought it as a 3bed home, never investigated, and then sold it as a 3bed home, then you can't really hold them liable.