Was I duped by my realtor, seller, and sellers agent?

[John Spencer]

I am currently purchasing a 2-unit multi-family (1st time) that is fully occupied and getting ready to close in 2 business days. When I was shown the property back in early September, I was advised by my realtor that the 1st unit was being rented at $900/month, and 2nd unit at $950/month. I was also issued the listing sheet on two occasions that also specified the rent amounts.

Shortly after the seller accepted my offer (on 9/16/17), I requested an estoppel certificate and was told by my realtor that he would be working on it. Two weeks went by and still no estoppel. I reached out and questioned the status of the estoppel on 10/5/17 in which he stated “still waiting on the estoppel but we only need that a week or so before closing”. At that time I trusted my realtor’s word and stopped bugging him about the estoppel (Huge mistake on my part!)

On 10/25/17 I finally received the estoppel certificate which shows that the 1st unit is currently renting at $800/month and 2nd at $926/month.

It appears that the seller or seller’s agent may have misrepresented the rent amount possibly so that I could visualize a higher cash flow. I also believe my realtor or the selling agent withheld the estoppel as it is dated for 10/3/17.

Because I have almost no time left to do anything I’m left thinking I got duped by my realtor, seller, and seller’s agent. Again, I close in 2 business days and it just so happens that the estoppel is sent conveniently right before closing.

Do I have any options available legal wise or filing a complaint if I can’t work something out?

Thank you for your time. 

[Roy N.]

You can put the brakes on Close.   You have received new information which reveals a ~6% difference in revenue performance of the business based upon the original representations made to you.   While this is not an earth shattering revelation, it does warrant slowing the puck down and revalidating the other information you have ... there is nothing wrong with insisting on an extension to digest this new information and decide whether you wish to proceed.

Since you will be looking at ~$1500/yr less revenue than anticipated, you could propose to reduce the purchase price by $1500 to offset the oversight on the part of the Vendor.