Legal Question in Real Estate Law in Minnesota
Misrepresentation
If we purchased a house that was marketed at 1,748 SQ FT and later discover that it is really 1,209 SQ FT do we have any legal grounds. We moved from a 4,200 SQ Ft home and were looking for a home with around 1,500-1,800 SQ FT. If we knew it was only 1,200 SQ FT we would have never even stepped onto the property to look at it. We had interest in future resale of the property and homes with fewer SQ Ft don't sell well.
2 Answers from Attorneys
Re: Misrepresentation
How would you not notice the discrepancy unless you bought the house without fist seeing it?
Re: Misrepresentation
Actionable misrepresentation requires that the misrepresentation be MATERIAL and that you REASONABLY rely upon it to your detriment.
I assume that the purchase agreement itself does not specify the square footage of the house, but rather that this information was provided in an information sheet from the seller. In the unlikly event that the purchase agreement specified the square footage and stated that it was a material provision of the contract, you may have a breach of contract claim; otherwise, it is a misrepresentation claim.
I take it that you have closed on the purchase and taken occupancy. I also assume that you had access to inspect the house prior to closing. While the difference in size is probably MATERIAL and is to your detriment; the key issue is probably whether you were reasonable to rely on the representation when you could confirm it for yourself. The large difference between the represented and actual size is a problem, since one may argue that it was obvious that the house was not that large just by looking at it.
Was there an appraisal, and what size did the appraiser assume? Was the price reasonable for the smaller or larger size?
Does the sales material give dimensions of individual rooms such that you could do the math to determine the correct square footage? How was the wrong square footage communicated to you? How recently did you close and take occupancy?
If the closing and occupancy are recent and the true size was obscured such that a buyer could not reasonably determine that it was smaller than the misrepresented number, and if the fair value of the house is significantly lower than what you paid for it, it may be worth pursuing a claim with the seller and real estate agent (at least to the point of developing more facts).
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