Legal Question in Real Estate Law in Massachusetts
square footage discreapancy and refinancing
Hi, we are in the process of refinancing the mortgage on our home, which we bought 4 years ago. The appraiser for the mortgage company came in with the squre footage discreapancy of approximately 120 sq.ft. (compared to the town records and MLS listing at the time of house purchase). Turns out he is right and there is a mistake in the town records. What should our actions be regrading 1. the re-fi (value lower than expected, may end up with a PMI or higher rates) 2. RE taxes -- future and past 3. misrepresentation by the buyer, if they were aware of the discrepancy...
Would really appreciate some advice, thank you.
2 Answers from Attorneys
Re: square footage discreapancy and refinancing
There is not much you can do about the refinancing, although square footage is not the critical issue in determining market value.
I would go to the town and ask that they re-assess the property based on the mistake and seek an adjustment in your property taxes.
Re: square footage discreapancy and refinancing
It depends upon how significant the error is. If it changes the value of the house by a significant amount, you may wish to have the town revisit the property and correct the property card so that your taxes are lower in the future. You can seek an abatement for past real estate taxes paid, provided that the deadline has not passed.
As far as misrepresentation by the Seller, you may find it a difficult challenge, in absence of some proof that the Seller was trying to deceive you. The seller could have been in the dark as well, and would the seller have wanted to pay more taxes if they had known about it?
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