Legal Question in Real Estate Law in Indiana

Can I get out of a purchase agreement for inaccurate info?

I signed a purchase agreement to buy a ''Newly remodelled and rewired'' home built in 1970. The paper which states this has a blanket disclaimer at the bottom saying that the info is not warranted.

We are near closing & have just found out that the home was built in 1958, not 1970. It is much older than we were told. The ''remodelled'' aspect is a 3 room addition. The addition has recent wiring, but the old section has the old wiring. To me ''rewired'' would mean that the old section had been rewired, (the new addition was first-time wired).

To me, they have misrepresented the home and I am not comfortable with purchasing a home that old without knowing what the differences in building code were and so on.

The real estate agent says that if I back out of this, the current owner will sue me for damages. The current owner wants to build a new house and has already had electricity hooked up at their new site and began moving out of the current home, prior to the assessment. We have not closed yet. Am I really stuck with this house?


Asked on 10/13/02, 9:05 am

1 Answer from Attorneys
C. David DuMond Law Offices of David DuMond

Re: Can I get out of a purchase agreement for inaccurate info?

Most real estate purchase agreements contain a provision giving the buyer inspection rights and the right to reject the contract. Your unhelpful real estate agent should be assisting with this. Read your purchase agreement carefully. Even if your purchase agreement is ambiguous about this, you could have an excuse to not perform the contract based on the implied misrepresentations you have described. Do you have a place to live if you do not purchase this home? If it is convenient and affordable for you to stay put, then your tactical position is improved. In any event, it would be best for you to consult with a local attorney for advice. Contact your county bar association for a referral to someone with experience in real estate law. The money you spend for this should be well worth it. Your objections should be communicated to the seller, but as your real estate agent seems more interested in securing a commission rather than a satisfied client, you better confer with counsel, and soon!

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Answered on 10/13/02, 11:01 am


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