Square Footage Less than Tax Record

[Rao V.]

Hi,

Last year I bought a house without appraisal. It was listed as a 3/2 SFH and 1120 sqft. Now when it tried to refinance the house their appraisal came at 760 sqft only. At the time I made a mistake to not check the tax records which shows the same. basically there is some addition in the back which is probably not permitted.

What are my options. Can I flip it as a 1120 sqft house? Do I need to demo the addition? Can I go after the seller. In my contract there is no mention of sqft. please help.