Legal Question in Real Estate Law in California

Misrepresentations by builder's broker

I am in escrow to buy a house which is new construction. The builder's broker published a brochure & a website stating the square footage as 1627, but my appraiser says the house is 1484 sf, although he appraised it for the contract price. We are about 10 days from closing, I've been approved for the loan, so the loan contingency is gone; there was no inspection contingency. I have about $7500 out of pocket so far. Is this a case of tough luck since the sq is not mentioned in the contract, or is there any recourse? (Also, the website lists the prce as $165,000 but they told me $170,000, which is the contract price.)


Asked on 6/07/03, 1:01 pm

1 Answer from Attorneys
Michael Olden Law Offices of Michael A. Olden

Re: Misrepresentations by builder's broker

Very interesting, I've handled real estate developments for numbers of years on behalf of the developer and I've never heard of a square footage being "advertised" and off by so much of a percentage. The problem you have the shore so close to closing and I do not know what you really want to do. When you say do you have any recourse I'm not sure if you mean should the price be lowered, to a right to sue based upon misrepresented square footage, terminate the deal and seek damages because of the situation, or something else. Therefore, I would need to discuss this with you more thoroughly to be able to give you a definitive type of answer. Even then it wouldn't be definitive. It becomes basically a business/light decision versus an economic decision. If you wish to contact me I would be more than happy to top with you what you have a very short fuse in terms of timing regarding this transaction as you are well aware.

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Answered on 6/07/03, 1:33 pm


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