Legal Question in Real Estate Law in California
Misrepresentation
My Real Estate Broker, a foreclosure specialist, told me and my partner that there is a foreclosure property which are in the market and he said that he already did some research and study on the property and all what we are going to do is give a touch of paint in the inside and outside of the house and some windows to be changed and he also mentioned that the most that we will spend is about $5,000.00. We went and visit the property in the afternoon about almost 5:00 pm and it is already beginning to get dark, and since the closing of the bidding is at 12:00 midnight we had to get back in his office and submit a bid, and we did. We got the property and start renovating it and after almost three weeks, we are ready to have it to be inspected so we can put it in the market. A lot of problems come up like the additional back portion of the house is illigally built. We told our broker and did not know what to do, so as not to waste any more time, we contacted a contractor to find out what else is to be done so we can get it permitted. a lot of problem come up and just to make the story short, the property we bought has a ''red flag'' on it. We already spent a lot of money and we cannot spend anymore. Can we sue the broker for this?
3 Answers from Attorneys
Re: Misrepresentation
There's quite a difference between the tone of the two prior responses! I think your chances against the broker depend upon whether he was acting in the capacity of your broker, or whether the three of you were acting as partners. It would be a requirement of suing him for misrepresentation or professional negligence that you be able to show that he was acting in a capacity where a high duty of care is owed.
Re: Misrepresentation
Whaddayou, a complete idiot? You bid on a property and not only didn't you get it professionally inspected first, you didn't even eyeball it in the daytime??!? Whether you can sue the broker does not depend on what he "said," that means nothing. It depends on what it says in the written contract -- I bet you didn't read that, either.
Re: Misrepresentation
The broker owed a duty to you to inform you and to provide accurate information. What was the relationship between you and the broker? Did the broker also act as an agent and recieve a commission or fees? Negligent misrepresentation is at least one cause of action against the broker and I would expect a breach of fidicuary duty also to be viable. Contact me directly.
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