Palmdale, CA · Member since 2013 · 62 posts · 4 votes
We just offered on a house with all contingencies waived and after the depositing the initial deposit we realize they are counting 300 sqft of completely unfinished room with no ceiling hvac huge unit in it and with all sorts of pipes taking floor space and ceiling space as a room of 300 sq ft.
This is misrepresentation as it makes the house so much smaller in the basement and we are already paying above asking by 50K. The listing matches the public records but that area is in no way livable. Doesn’t have heating/cooling and is junk space with the electricals no flooring no finished walls .
can we cancel this contract and get our money back.
Residential Real Estate Investor · Kansas City, MO · Member since 2014 · 10k+ posts · 5k+ votes
1y
Often the listing agreement will say something like "buyer to verify." But the disclosures usually have something about "are there any rooms with no ventilation." If they marked "no," that would definitely appear to be a misrepresentation. Of course, I'm no attorney so you should consult with one.
But before gping nuclear on them, I would just address to them and assume it was a mistake. "Hey, I know that we waived our contingencies but it has just come to our attention that 300 sq. ft. of space is actually unfinished basement and is unventilated despite the disclosures saying there is no unventilated space. I know these kinds of mistakes happen, but can we just make this right and adjust the price according?" or something like that.
Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
1y
Did the seller's agent mention anywhere that this was the case? SOmetimes there are 'private remarks' that will nention things like this...?
If it was completely not disclosed, then of course you have a case. But you have to be proactive, because even your Realtor will not be on your side.....they just want the deal to go through.
But think about this...can you finish the basement (legally of course) and gain additional value? Maybe a quick trip to the City/County Building Department, and ask what they would require.... another entrance/eggress windows/electrical/plumbing w a sewer pump/etc... Do the math, see if this would allow you to add even more value to the property for resale down the road. Or could you rent it out? Or use it for a STR?
Real Estate Agent · Atlanta, GA · Member since 2020 · 1k+ posts · 1k+ votes
1y
@Sam Abe, Georgia is a caveat emptor state (buyer beware). Unless you're still within your due diligence period, there is no contingency that you can enforce to back out of the deal and receive your earnest money deposit. The buyer is responsible for verifying all information about the property. It sounds like you submitted a blind offer without performing any initial walkthrough. Why? Was it that good of a deal that you had to submit an offer unseen? Hopefully, your real estate agent did not advise this. Can you confirm whether you're still within your due diligence period?
Palmdale, CA · Member since 2013 · 62 posts · 4 votes
1y
I am not within due diligence as the offer was alll contingencies waived, as-is purchase. But we did not notice the sq ft was off by 300 as we didn't know the unfinished room is counting towards the finished basement. As an initial 15 mins walk thru we didn't realize, we relied on the listing to have been accurate. The county has 958 sq ft finished basement but really the finished space is only 600 sq ft.
The listing also has an extra bathroom not on the county records. There was no note on the listing saying buyer to verify or anything.
Real Estate Agent · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes
1y
Where is this? Chances are you are SOL. In most cases it is a buyer beware situation and you should have done your due diligence. I had a similar situation in Nashville where the Seller/Agent misrepresented the separate meters. We consulted an attorney and he said that we could have counted the meters during the due diligence period.
The square footage in the MLS is for marketing purposes. Agents put whatever they feel is necessary. You could have looked in public records prior to submitting.
For example for a while in Los Angeles new construction was counting the garages in the total square footage.
The challenge is you have to prove that the seller misrepresented. For example, if they said that the basement was not part of the square footage but you find out it is.
I understand that submitting non contingent offers makes you competitive, but it is never a good idea. Take this as an unfortunate lesson. I never recommend my clients do non-contingent offers, even if they want to. The only exception MIGHT be if they are going to tear down the house anyways and paying cash where everything is straightforward.
Palmdale, CA · Member since 2013 · 62 posts · 4 votes
1y
This is in GA, Also we just realized the listing says 4 bed bath but county records show 4 bed 2 bath so 1 un permitted. Wondering isn't the owner suppose to disclose this fact. We just want to get out of the deal, do we have a way out?
This is in GA, Also we just realized the listing says 4 bed bath but county records show 4 bed 2 bath so 1 un permitted. Wondering isn't the owner suppose to disclose this fact. We just want to get out of the deal, do we have a way out?
Every state has different laws. Georgia might be a buyer beware state like most where it is up to you to do your due diligence.
For example, in California, if you found out about the unpermitted bathroom and the Seller had knowledge of that fact, then you might have grounds. But you have to prove it.
In GA, it MAY be that a Seller has to disclose material facts and then you have to argue if that is in fact material.
I highly recommend you consult an attorney. I think the biggest issue is you went in with a full contingency release so you basically waived your right to inspect all of this anyways.
Real Estate Broker · Boone, NC · Member since 2024 · 82 posts · 55 votes
1y
Technically, since you waived contingencies, it can be challenging to back out without risking losing your deposit. However, this sounds like a potential misrepresentation of the property, and if there was a material misstatement in the listing that led you to make an offer (like including non-livable space as part of the square footage), you might have grounds to cancel.
Here’s what I’d recommend:
1. Document everything: Take clear pictures of the space, including the unfinished areas and any issues with HVAC, electrical, or plumbing. This will be important if you have to present your case.
2. Review the contract: Sometimes there’s a clause about “misrepresentation” or “failure to disclose material facts,” which might give you a way out.
3. Communicate with the seller or agent: Reach out to discuss this discrepancy and see if they’re willing to renegotiate the deal or offer a solution (sometimes they’ll adjust the price, or in rare cases, they’ll let you out of the deal).
4. Talk to your attorney: Since you’re in a tricky situation, having legal advice can give you clarity on your best course of action.
Worst-case scenario, you may have to eat the deposit if there’s no clause in your favor, but definitely push back and see if you can get a solution that works for you.
Residential Real Estate Investor · Kansas City, MO · Member since 2014 · 10k+ posts · 5k+ votes
1y
Often the listing agreement will say something like "buyer to verify." But the disclosures usually have something about "are there any rooms with no ventilation." If they marked "no," that would definitely appear to be a misrepresentation. Of course, I'm no attorney so you should consult with one.
But before gping nuclear on them, I would just address to them and assume it was a mistake. "Hey, I know that we waived our contingencies but it has just come to our attention that 300 sq. ft. of space is actually unfinished basement and is unventilated despite the disclosures saying there is no unventilated space. I know these kinds of mistakes happen, but can we just make this right and adjust the price according?" or something like that.