Legal description not what was sold

[Diego La Rotta]

Hello Bigger pockets,

I'm curious if anyone has gone through this situation or if anyone has any advice on how to go through this situation. When purchasing a property with an FHA loan the guidelines are more stricter than when purchasing a home with a conventional loan from my understanding. A property was purchased with an FHA loan, the property was advertised as a four unit complex. After going to the city and changing the name at the tax department, the owner was told that the property was in fact a two unit property. The owner after going through their closing documents came to the conclusion that it was a duplex.

The buying and selling realtor told the buyers the property was a legal four unit property but never gave a document providing proof that it was a four unit property. The owners contacted the bank and made a claim to the bank of the situation. As of today the bank is doing their search on the property and would give the owners some feedback in the next couple of days.

This property was sold at an appraisal as a four unit property. About $150,000 more than what any two unit property in the area would sell for. The owners are waiting to hear a response from the bank but they would like some feedback from someone that has gone though this situation or has some familiar feedback. 

Thank you