Seller misrepresented the property and now I am under contract?

Question

In my  scenario the property was being marketed as having “Central Air” cooling and it actually spells It out on the listing twice so I didn’t question it and after seeing so many properties that day i assumed everything was good to go. What are my options? I know that sometimes a condenser gets stolen from the the outside but this has no AC at all and will now need the duct work as well as the AC system which could cost me 10-15K. That’s a big mistake in my opinion. Thanks

I’m sure I could use this error to back out of the deal but I’ve already invested time and money into this deal and I am currently in the process of applying for a land use variance(Rezoned).

Should the seller have to pay for the entire thing if they provided false information to the listing agent?

Russell Brazil · Answer

If you are the realtor, why didnt you notice the lack of AC when you wrote the offer? The standards for a licensed agent are considerably different than the standards for a member of the general public.

Mark F. · Answer

Centeal AC isn't that super common in Northern NJ from what I've seen. If it was advertised having central AC,why didn't anyone verify that like @Russell Brazil said? You can do that in a drive by.

I'm about ownership and I'd say someone dropped the ball on your side on that one.

Darius Ogloza · Answer

Keep the deal.  Try to renegotiate the price if you can.  Your claim for misrepresentation will not go away if you accept the deal.  You can pursue it separately for damages if the seller refuses to renegotiate and you are so inclined.  If no renegotiation, at closing have your attorney send a letter to seller spelling out that you are reserving all of your rights to pursue a remedy for the misrepresentation.

Russell Brazil · Answer

Dude, you dont need to be snarky or passive aggressive. I asked a straight forward question, which could have had multiple possible answers that could possibly enlighten us to the situation. For instance one possible answer could have been you were buying site unseen and relying on documentation and not what your eyes can see.

You never stated any where in your post that this was your first transaction, only that you were the realtor, and the 2nd sentence in my post illustrates the issue there.

From the moment you get your license, the legal standards for you completely change. The government doesn't care if it is your first transaction. Once you are licensed, they deem you to be an expert.  So, with no disclosure law in NJ as youve posted, you relied on information then in the MLS Im assuming. Standard MLS disclosure is that information is deemed accurate but not guaranteed.

Sucks learning the hard way, but honestly better to make your mistakes on your own transactions than on a clients.

Having a license doesnt mean you know what you are doing, and theres nothing wrong with that fact. It takes time to learn. Consider joining a team where you can have someone more directly walking you through the process. Or even hire another agent til you do. I hire agents when I'm doing business in other states, and I represent other agents as well.  Find a mentor for the first year to walk yoi through the first few deals. All these things likely mean splitting your commission with someone, but thats likely less costly than the potential mistakes youll avoid.

Mike Cumbie · Answer

@Corey Kenney

If you are new I am guessing there is some miscommunication on terminology. REALTOR is a term that means you have membership in the National Association of REALTORS. In order to be a member you have to have passed your state licensing requirements and hung your license under a broker who oversees your transactions. You also must agree to abide by a set of articles and pay membership dues.

If you have passed your state licensing requirements one of the most important things they teach is your states Disclosure laws pertaining to the property as well as the responsibilities of the agent. Some comments are based on the fact you are a licensed member of NAR (and they have certain expectations of your abilities) If you are not and just kind of saying "I'm acting as my own agent" that will be a completely different ball of wax. Like a ASE certified and licensed Brake mechanic saying "What's a caliper" is way different than an average person at home saying "What's a caliper".

Marcus Auerbach · Answer

@Corey Kenney - I don't think this was Russel's intention, even though I totally get why you took it this way. Here is the back story:

One should hire an experienced agent, not just an agent. This industry has a 90% drop out rate, so after 2 years you are considered a veteran. NAR says the average agent does 7 deals a year - you can't know anything from doing 7 deals. Don't hire a rookie to help you! The license itself does not do much, it's the experience that brings value.

Many new investors think it is smart to get licensed and self represent - instead of spending some time to find a guy like @Russell Brazil who will do a 5 minute walk through and just rattle off anything that is off with a property, because he has done it a million times. I am sure he did not mean to offend you.

Anyway, you have been given good advice: take a screen shot and re-negotiate the deal. Hopefully the seller has equity and motivation. It might have been the agents mistake (don't get me started) and the seller may have never mentioned AC. Test their motivation and see who blinks first!

Good luck!

Theresa Harris · Answer

@Corey Kenney  Talk to your realtor and see what they say.  You should be able to renegotiate.  make sure you take screen shots of the listing before you talk to them as it is easy enough for them to change it.

If not and you will lose money on the deal putting it in, sometimes you need to walk away rather than throw good money after bad.

Corey Kenney · Answer

@Theresa Harris

Thanks Theresa for the input. I am the realtor in this transaction and I have sent the listing over to my attorney but I was curious as to the thoughts of others in this scenario while I’m waiting for him to get back to me . I have a potential 75k profit so I would be silly to walk away for even a 15K hit from that, it’s still a great deal.

Steve Morris · Answer

Should the seller have to pay for the entire thing if they provided false information to the listing agent?

Does NJ law require a disclosure form from seller?  I'd assume yes.

Go back and say your price relied on disclosures from seller/agent.  Disclosures were not accurate which affect price/value of house.  Go back and ask for price reduction.

Corey Kenney · Answer

@Corey Kenney

Okay everyone, I’m turning to you once again for this same property. Yes I should have had an inspection but I didn’t and during my further inspection I found a wall in the attic that has charred 2x4’s and plywood that is almost completely covered up except around the window and this would explain the fact that the entire roof was replace at some point in the last 10 years. I asked the listing agent if there was anything disclosed to him regarding a fire and he said he was not aware of a fire at that property and he’s a veteran in that area so I thought he might remember seeing something. The listing agent said he would ask the Fire Marshall and get back to me with his findings and that was 48 hours ago. Is this definitely 100% an undisclosed material defect? How can I get this work inspected and approved so that future buyers dont/can’t walk away when I have to disclose it. I want to just cover it and keep it moving on this deal but I’m worried this was never reported and they attempted to cover it up. What if the current seller says it was like that when he bought it?  Please advise

Thanks

Seller misrepresented the property and now I am under contract?

Most Popular Reply