Misreprentation (or error?) of Lot Size, City and Zipcode on MLS

Misreprentation (or error?) of Lot Size, City and Zipcode on MLS

Member since 2024 · 107 posts · 55 votes

I'd love opinions on what, if anything, can or should be done in this situation. (aka - What Would You Do?)

It's been a very, very bumpy road to be under contract - and past the due dilligence period - on a new build we are purchasing with the intent to use it as a STR (and some personal use). Property was listed in a highly desirable zipcode in a tourist area on 1.02 acres. At showing, we were given a plat showing property was 2.11 acres. Seller/Builder was present at showing and told us the listing was wrong; it was 2.11 acres. He had listing agent change MLS listing to 2.11 acres. Two days later our offer to purchase the property + adjacent empty lot was accepted. Address is listed as Street Name, Lot #, Desirable City, State + Zip

Something about the plat seemed off to me and I discovered a calculation error and that it was actually 1.02 acres. Seller changed listing back to 1.02 acres. We asked for a new survey as we no longer trusted the lot markers we had been shown. Seller refused. Listing agent told him that he needed to put in writing that the lot markers he has in place are correct, but he hasn't done that. (We didn't want to pay for a survey and couldn't get one done during the two week DD period.)

Post-inspection negotiations really tried our patience with seller going back on his word on things and niggling over other things. For example, part of the exterior of the house wasn't stained. He's placing the money owed the painter to complete the staining in esrow since weather won't allow it to be done before closing. The amount is a fraction of what we would have to pay to hire someone. He insisted that a phrase be added that the money is to be released upon completion "and not upon approval by the seller." So he can do a crappy job and still get the funds. What little trust I had in the seller disappeared during this process.

Now, three days after finalizing all that, I get a text from my agent that they have assigned a street address. It is a different street name than we were told and in the neighboring - and less desirable - city and zip. I feel like the builder had to have known this. He's also the developer and this is the first house in Phase II of this development. Phase I of the development was in the more desirable city + Zip. He's listed this cabin on AirBnB as being in the less desirable city. I mistakenly assumed that was an error because the place didn't have an official street address yet. The Property Management website lists it as "approximate location: Street Name on contract." (They have other properties throughout the area listed as "approximate location" and not just this one, but most are listed as "location" with development name, street name or near an attraction.) 

We really like the cabin, but I feel like the value is less than what I made an offer on; I'm overpaying for 1.02 acres in a less desirable zip code. We were not the only offer received, but we were the highest. We went in with what we hoped would be the winning offer because this is the one that checked the most boxes of everything we'd seen in months and we really like it.

Am I even under contract for this property with everything in the address being wrong? As for the info being wrong - I know that filing a complaint against the listing agent for misrepresentation could be an option. We can also walk and lose EM (and the money we've put into inspections and PE consultation.) Would you do either? Any other options I should consider?

0Reply
44 views

Most Popular Reply

Investor · Get yourself trained before doing something inadvisable. · Member since 2024 · 3k+ posts · 1k+ votes
1y
Quote from @Dina Schmid:

I'd love opinions on what, if anything, can or should be done in this situation. (aka - What Would You Do?)

It's been a very, very bumpy road to be under contract - and past the due dilligence period - on a new build we are purchasing with the intent to use it as a STR (and some personal use). Property was listed in a highly desirable zipcode in a tourist area on 1.02 acres. At showing, we were given a plat showing property was 2.11 acres. Seller/Builder was present at showing and told us the listing was wrong; it was 2.11 acres. He had listing agent change MLS listing to 2.11 acres. Two days later our offer to purchase the property + adjacent empty lot was accepted. Address is listed as Street Name, Lot #, Desirable City, State + Zip

Something about the plat seemed off to me and I discovered a calculation error and that it was actually 1.02 acres. Seller changed listing back to 1.02 acres. We asked for a new survey as we no longer trusted the lot markers we had been shown. Seller refused. Listing agent told him that he needed to put in writing that the lot markers he has in place are correct, but he hasn't done that. (We didn't want to pay for a survey and couldn't get one done during the two week DD period.)

Post-inspection negotiations really tried our patience with seller going back on his word on things and niggling over other things. For example, part of the exterior of the house wasn't stained. He's placing the money owed the painter to complete the staining in esrow since weather won't allow it to be done before closing. The amount is a fraction of what we would have to pay to hire someone. He insisted that a phrase be added that the money is to be released upon completion "and not upon approval by the seller." So he can do a crappy job and still get the funds. What little trust I had in the seller disappeared during this process.

Now, three days after finalizing all that, I get a text from my agent that they have assigned a street address. It is a different street name than we were told and in the neighboring - and less desirable - city and zip. I feel like the builder had to have known this. He's also the developer and this is the first house in Phase II of this development. Phase I of the development was in the more desirable city + Zip. He's listed this cabin on AirBnB as being in the less desirable city. I mistakenly assumed that was an error because the place didn't have an official street address yet. The Property Management website lists it as "approximate location: Street Name on contract." (They have other properties throughout the area listed as "approximate location" and not just this one, but most are listed as "location" with development name, street name or near an attraction.) 

We really like the cabin, but I feel like the value is less than what I made an offer on; I'm overpaying for 1.02 acres in a less desirable zip code. We were not the only offer received, but we were the highest. We went in with what we hoped would be the winning offer because this is the one that checked the most boxes of everything we'd seen in months and we really like it.

Am I even under contract for this property with everything in the address being wrong? As for the info being wrong - I know that filing a complaint against the listing agent for misrepresentation could be an option. We can also walk and lose EM (and the money we've put into inspections and PE consultation.) Would you do either? Any other options I should consider?

My approach is when there is that much unreliable information, I either call it a day and walk since I have no idea what comes next or I negotiate to a super deal so that whatever I haven't been told can be taken care of. 
See this reply in the discussion

11 Replies

Jump to latestLatest
  • Member since 2024 · 107 posts · 55 votes
    1y

    I went back over the paperwork we signed. Disclosure form lists the address as: Development Name Lot #, Desirable City, Zip of less desirable

    Agency Consent and Purchase Agreement list Street Name, Lot #, Desirable City, State + Zip. Purchase agreement also says that we're purchasing 2.11 acres and does not have an adendum to change that. This is the first build in Phase 2 and adjacent lots are open. Do we have a case for being given 2.11 acres? (Not that it's likely to be worth a legal fight I would guess.)

  • Investor · Corpus Christi, TX · Member since 2012 · 2k+ posts · 1k+ votes
    1y

    1. Check the entire MLS print-out. Many will have a disclaimer stating that the information cannot be relied upon and buyers must confirm all information via their own due diligence.

    2. Purchase contract should show the entire legal as platted. If the contract shows the correct legal description but also shows seller is conveying 2.11 acres, and that has not been amended, I think you have a reasonable argument. If you're using the builder's contract form, rest assured it will be very one-sided in the builder's favor.

    3. With the potential for a small financial loss on your end, litigation would certainly not be worth the hassle and expense. If you have the legal right to terminate, it would be a better option. If you're not sure about your contractual rights and obligations, seek legal counsel. 

  • Member since 2024 · 107 posts · 55 votes
    1y
    Quote from @Guy Gimenez:

    1. Check the entire MLS print-out. Many will have a disclaimer stating that the information cannot be relied upon and buyers must confirm all information via their own due diligence.

    2. Purchase contract should show the entire legal as platted. If the contract shows the correct legal description but also shows seller is conveying 2.11 acres, and that has not been amended, I think you have a reasonable argument. If you're using the builder's contract form, rest assured it will be very one-sided in the builder's favor.

    3. With the potential for a small financial loss on your end, litigation would certainly not be worth the hassle and expense. If you have the legal right to terminate, it would be a better option. If you're not sure about your contractual rights and obligations, seek legal counsel. 


     Thanks for chiming in. 

    Contract does state: "Nothing in this Contract shall be interpreted to permit Seller to provide false, misleading, or fraudulent information to Buyer." I know MLS listings aren't guaranteed accurate, but getting the acreage, city and zip code wrong is hard to swallow as an honest mistake.

    We have a financing contingency, so if it doesn't appraise for the contract amount due to the lower acreage and different city/zip, we can renegotiate purchase price. That might be our only true recourse.

  • Investor · Get yourself trained before doing something inadvisable. · Member since 2024 · 3k+ posts · 1k+ votes
    1y
    Quote from @Dina Schmid:

    I'd love opinions on what, if anything, can or should be done in this situation. (aka - What Would You Do?)

    It's been a very, very bumpy road to be under contract - and past the due dilligence period - on a new build we are purchasing with the intent to use it as a STR (and some personal use). Property was listed in a highly desirable zipcode in a tourist area on 1.02 acres. At showing, we were given a plat showing property was 2.11 acres. Seller/Builder was present at showing and told us the listing was wrong; it was 2.11 acres. He had listing agent change MLS listing to 2.11 acres. Two days later our offer to purchase the property + adjacent empty lot was accepted. Address is listed as Street Name, Lot #, Desirable City, State + Zip

    Something about the plat seemed off to me and I discovered a calculation error and that it was actually 1.02 acres. Seller changed listing back to 1.02 acres. We asked for a new survey as we no longer trusted the lot markers we had been shown. Seller refused. Listing agent told him that he needed to put in writing that the lot markers he has in place are correct, but he hasn't done that. (We didn't want to pay for a survey and couldn't get one done during the two week DD period.)

    Post-inspection negotiations really tried our patience with seller going back on his word on things and niggling over other things. For example, part of the exterior of the house wasn't stained. He's placing the money owed the painter to complete the staining in esrow since weather won't allow it to be done before closing. The amount is a fraction of what we would have to pay to hire someone. He insisted that a phrase be added that the money is to be released upon completion "and not upon approval by the seller." So he can do a crappy job and still get the funds. What little trust I had in the seller disappeared during this process.

    Now, three days after finalizing all that, I get a text from my agent that they have assigned a street address. It is a different street name than we were told and in the neighboring - and less desirable - city and zip. I feel like the builder had to have known this. He's also the developer and this is the first house in Phase II of this development. Phase I of the development was in the more desirable city + Zip. He's listed this cabin on AirBnB as being in the less desirable city. I mistakenly assumed that was an error because the place didn't have an official street address yet. The Property Management website lists it as "approximate location: Street Name on contract." (They have other properties throughout the area listed as "approximate location" and not just this one, but most are listed as "location" with development name, street name or near an attraction.) 

    We really like the cabin, but I feel like the value is less than what I made an offer on; I'm overpaying for 1.02 acres in a less desirable zip code. We were not the only offer received, but we were the highest. We went in with what we hoped would be the winning offer because this is the one that checked the most boxes of everything we'd seen in months and we really like it.

    Am I even under contract for this property with everything in the address being wrong? As for the info being wrong - I know that filing a complaint against the listing agent for misrepresentation could be an option. We can also walk and lose EM (and the money we've put into inspections and PE consultation.) Would you do either? Any other options I should consider?

    My approach is when there is that much unreliable information, I either call it a day and walk since I have no idea what comes next or I negotiate to a super deal so that whatever I haven't been told can be taken care of. 
  • Mechanicsburg, PA · Member since 2013 · 3k+ posts · 2k+ votes
    1y

    @Dina Schmid  We has a situation where the seller of the property was an estate and listed the property as being 8 acres.  Early in my career, and being a city boy, it still didn't seem right to me.  We wrote the contract on a "per acre" price assuming 8 acres contingent upon a survey.  To fulfill the contract the Seller needed to pay for the survey, which resulted in a size of 1.8 acres.  I don't think the estate was being decietful, but their dearly departed originally di have 8 acres but sold off parts along the way resulting in a net of 1.8 acres.  Also assessment never picked up those multiple sales and the parcel was being taxed at 8 acres.  After purchase the assessment office was given the survey and quickly reduced the acreage for taxation to 1.8 acres also.  In another purchase we bought a property at Sheriff Sale that was listed as 1.6 acres. By doing research we discovered that 1.0 acres was sold off in the 1960s and never caught by the assesment office, so the tax bills were too high for 40 years.  I asked for a retroactive refund plus interest for the 40 years of over taxation.  They laughed. 

  • Investor · Corpus Christi, TX · Member since 2012 · 2k+ posts · 1k+ votes
    1y
    Quote from @Dina Schmid:
    Quote from @Guy Gimenez:

    1. Check the entire MLS print-out. Many will have a disclaimer stating that the information cannot be relied upon and buyers must confirm all information via their own due diligence.

    2. Purchase contract should show the entire legal as platted. If the contract shows the correct legal description but also shows seller is conveying 2.11 acres, and that has not been amended, I think you have a reasonable argument. If you're using the builder's contract form, rest assured it will be very one-sided in the builder's favor.

    3. With the potential for a small financial loss on your end, litigation would certainly not be worth the hassle and expense. If you have the legal right to terminate, it would be a better option. If you're not sure about your contractual rights and obligations, seek legal counsel. 


     Thanks for chiming in. 

    Contract does state: "Nothing in this Contract shall be interpreted to permit Seller to provide false, misleading, or fraudulent information to Buyer." I know MLS listings aren't guaranteed accurate, but getting the acreage, city and zip code wrong is hard to swallow as an honest mistake.

    We have a financing contingency, so if it doesn't appraise for the contract amount due to the lower acreage and different city/zip, we can renegotiate purchase price. That might be our only true recourse.


    I don't know what State you're in or if you used a builder contract or the standard State contract form. But you may check if you have to right to object to certain title or survey matters. Texas has this in the boilerplate language and it's a powerful provision. If you're allowed to object and you're still within your objection period, you may want to review your title commitment for objectionable matters that may give you a right to terminate without penalty.

  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    1y

    on plat that are new this is not an uncommon occurrence. My current 90 home project has split  zoning  half the lots are zone one thing the other half another but I do know what is what.

    Cities screw up all the time.. In my mind if you have these issues if I was the seller I would let  you cancel and get your EM back  not your inspections and other things but EM yes.

    I agree different city if your talking school district quality that is a huge issue to me.

    Just be glad at this point if you walk its just a little money you lost not owning something you dont want to own.. it happens.. 

  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    1y

    walk away

  • Tom GimerBusiness Member
    DMV · Member since 2017 · 3k+ posts · 3k+ votes
    1y

    @Jay Hinrichs I handled an auction sale years ago where the city/state had assessed a riverside parcel at 60+ acres for decades when it was actually less than 20. Oops, sorry… no you are not getting a refund. And no, the purchaser would not have a viable claim over the incorrect record as all information concerning the subject property must be independently verified.

    Owner should have accepted the pre-auction offer which turned out to be ~2x the high bid.

    Gimer Law516 Reviews
  • Member since 2024 · 107 posts · 55 votes
    1y
    Quote from @Ken M.:
    Quote from @Dina Schmid:

    I'd love opinions on what, if anything, can or should be done in this situation. (aka - What Would You Do?)

    It's been a very, very bumpy road to be under contract - and past the due dilligence period - on a new build we are purchasing with the intent to use it as a STR (and some personal use). Property was listed in a highly desirable zipcode in a tourist area on 1.02 acres. At showing, we were given a plat showing property was 2.11 acres. Seller/Builder was present at showing and told us the listing was wrong; it was 2.11 acres. He had listing agent change MLS listing to 2.11 acres. Two days later our offer to purchase the property + adjacent empty lot was accepted. Address is listed as Street Name, Lot #, Desirable City, State + Zip

    Something about the plat seemed off to me and I discovered a calculation error and that it was actually 1.02 acres. Seller changed listing back to 1.02 acres. We asked for a new survey as we no longer trusted the lot markers we had been shown. Seller refused. Listing agent told him that he needed to put in writing that the lot markers he has in place are correct, but he hasn't done that. (We didn't want to pay for a survey and couldn't get one done during the two week DD period.)

    Post-inspection negotiations really tried our patience with seller going back on his word on things and niggling over other things. For example, part of the exterior of the house wasn't stained. He's placing the money owed the painter to complete the staining in esrow since weather won't allow it to be done before closing. The amount is a fraction of what we would have to pay to hire someone. He insisted that a phrase be added that the money is to be released upon completion "and not upon approval by the seller." So he can do a crappy job and still get the funds. What little trust I had in the seller disappeared during this process.

    Now, three days after finalizing all that, I get a text from my agent that they have assigned a street address. It is a different street name than we were told and in the neighboring - and less desirable - city and zip. I feel like the builder had to have known this. He's also the developer and this is the first house in Phase II of this development. Phase I of the development was in the more desirable city + Zip. He's listed this cabin on AirBnB as being in the less desirable city. I mistakenly assumed that was an error because the place didn't have an official street address yet. The Property Management website lists it as "approximate location: Street Name on contract." (They have other properties throughout the area listed as "approximate location" and not just this one, but most are listed as "location" with development name, street name or near an attraction.) 

    We really like the cabin, but I feel like the value is less than what I made an offer on; I'm overpaying for 1.02 acres in a less desirable zip code. We were not the only offer received, but we were the highest. We went in with what we hoped would be the winning offer because this is the one that checked the most boxes of everything we'd seen in months and we really like it.

    Am I even under contract for this property with everything in the address being wrong? As for the info being wrong - I know that filing a complaint against the listing agent for misrepresentation could be an option. We can also walk and lose EM (and the money we've put into inspections and PE consultation.) Would you do either? Any other options I should consider?

    My approach is when there is that much unreliable information, I either call it a day and walk since I have no idea what comes next or I negotiate to a super deal so that whatever I haven't been told can be taken care of. 
    If it was entirely up to me, I would have walked. We've heard so many untruths from the seller it's ridiculous. My husband thinks it will be worth it to stick it out. 
  • Member since 2024 · 107 posts · 55 votes
    1y
    Quote from @David Krulac:

    @Dina Schmid  We has a situation where the seller of the property was an estate and listed the property as being 8 acres.  Early in my career, and being a city boy, it still didn't seem right to me.  We wrote the contract on a "per acre" price assuming 8 acres contingent upon a survey.  To fulfill the contract the Seller needed to pay for the survey, which resulted in a size of 1.8 acres.  I don't think the estate was being decietful, but their dearly departed originally di have 8 acres but sold off parts along the way resulting in a net of 1.8 acres.  Also assessment never picked up those multiple sales and the parcel was being taxed at 8 acres.  After purchase the assessment office was given the survey and quickly reduced the acreage for taxation to 1.8 acres also.  In another purchase we bought a property at Sheriff Sale that was listed as 1.6 acres. By doing research we discovered that 1.0 acres was sold off in the 1960s and never caught by the assesment office, so the tax bills were too high for 40 years.  I asked for a retroactive refund plus interest for the 40 years of over taxation.  They laughed. 

    Thanks for the headsup to check into the taxes. I will definitely have to take a look there.
Join the conversationCreate a free account to reply, vote on answers and follow this thread.