Agent lying about property
Member since 2022 · 8 posts · 8 votes
Agent lying about property
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Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
3yDid you do inspections or have someone there to do so? Also any SD's provided by the seller? HVAC should have been tested during inspections. I'd also always recommend scoping the sewer and evaluated the plumbing during inspections. Seems to fall on your fault for not doing enough due diligence. Yes the agent needs to be accountable but I'd never take their word on the systems of a property.
51 Replies
- 3yBjorn AhlbladPro MemberInvestor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes
Indeed there is, you can report the agent to the Real Estate Board in this case NC. All the best!
- Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes3y
Did you do inspections or have someone there to do so? Also any SD's provided by the seller? HVAC should have been tested during inspections. I'd also always recommend scoping the sewer and evaluated the plumbing during inspections. Seems to fall on your fault for not doing enough due diligence. Yes the agent needs to be accountable but I'd never take their word on the systems of a property.
- Member since 2022 · 8 posts · 8 votes3yThanks for your input, I have a team set up now so that this won’t happen again. I was naive for trusting everyone out of state right off the bat, but I’ll try to learn from this one.
Quote from @Caleb Brown:
Did you do inspections or have someone there to do so? Also any SD's provided by the seller? HVAC should have been tested during inspections. I'd also always recommend scoping the sewer and evaluated the plumbing during inspections. Seems to fall on your fault for not doing enough due diligence. Yes the agent needs to be accountable but I'd never take their word on the systems of a property.
- Realtor · Hanover Twp, PA · Member since 2018 · 3k+ posts · 3k+ votes3y
@Keoni Manago, I disagree with @Bjorn Ahlblad. An agent is only relaying information provided by the seller. Also MLS listings usually have a caveat spelled out about the information not being guaranteed to be accurate. The only way an agent would be potentially liable is if they knew about material defects and did not disclose them. For example as an agent I have discovered on my own termite damage that the owner was not aware of. I made sure all parties were aware because that would be a material defect.
Your issue is more likely with the seller. Did the seller provide a disclosure giving information about the condition of the property? Did they state that these items were brand new? If so, your recourse is likely against the seller. However, if you were buying a property without a disclosure such as a foreclosure then you needed to rely on your own due diligence such as a home inspection.
- 3yBjorn AhlbladPro MemberInvestor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes
@Kevin Sobilo generally I might agree; but in this case the agent represented the HVAC and plumbing 'as new' in a representation-at least according to OP. That to me, is a pretty glaring mis representation. Agents I have worked with would not have allowed me as seller to get away with that.
- Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes3y
Quote from @Keoni Manago:
Does anyone have experience with an agent lying about the state of utilities at a site unseen property. I am a first time investment property owner from Hawaii investing in North Carolina. I was told my HVAC and plumbing was brand new, but after closing and getting a renter into the property found out that the HVAC needs to be replaced and the plumbing is so clogged up that the toilet won’t flush. Now, I’m paying thousands of dollars out of pocket to remedy these issues. Is there anything I can do to keep my agent accountable for his lies? Any advice will help, thank you.
Why would you close without having a team in place? I have bought and sold 100s and 100s and 100s, never a worry as we have a team in place, lesson learned,
All the best moving forward,BTW the agent should have at the minimal did a live video walk through with you, Also I assume you were not buying as is so what about the inspection?
- Realtor · Hanover Twp, PA · Member since 2018 · 3k+ posts · 3k+ votes3y
Quote from @Bjorn Ahlblad:
@Kevin Sobilo generally I might agree; but in this case the agent represented the HVAC and plumbing 'as new' in a representation-at least according to OP. That to me, is a pretty glaring mis representation. Agents I have worked with would not have allowed me as seller to get away with that.
@Bjorn Ahlblad, how would an agent know those things if not told them by the seller? The agent is always relaying information either from a public source like assessment records, deed, etc or from the seller.
If for example the seller put on the disclosure that the HVAC and plumbing are new and the agent uses that information in their listing the agent does not become liable for its accuracy.
The agent would only be liable if they knowingly said something false which is highly unlikely in most cases like this.
You are correct that an agent would not knowingly allow a seller to lie but they won't necessarily catch everything either.
- Lender · Morristown, NJ · Member since 2022 · 153 posts · 71 votes3y
@Keoni Manago, did you have an inspection done on the property?
- Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes3yIt's a shame people will lie but part of REI is dealing with bad eggs. A team in place will help with it being a smoother process
Quote from @Keoni Manago:
Thanks for your input, I have a team set up now so that this won’t happen again. I was naive for trusting everyone out of state right off the bat, but I’ll try to learn from this one.Quote from @Caleb Brown:
Did you do inspections or have someone there to do so? Also any SD's provided by the seller? HVAC should have been tested during inspections. I'd also always recommend scoping the sewer and evaluated the plumbing during inspections. Seems to fall on your fault for not doing enough due diligence. Yes the agent needs to be accountable but I'd never take their word on the systems of a property.
- Member since 2022 · 8 posts · 8 votes3y
Quote from @Kevin Sobilo:
@Keoni Manago, I disagree with @Bjorn Ahlblad. An agent is only relaying information provided by the seller. Also MLS listings usually have a caveat spelled out about the information not being guaranteed to be accurate. The only way an agent would be potentially liable is if they knew about material defects and did not disclose them. For example as an agent I have discovered on my own termite damage that the owner was not aware of. I made sure all parties were aware because that would be a material defect.
Your issue is more likely with the seller. Did the seller provide a disclosure giving information about the condition of the property? Did they state that these items were brand new? If so, your recourse is likely against the seller. However, if you were buying a property without a disclosure such as a foreclosure then you needed to rely on your own due diligence such as a home inspection.
I bought the house from a wholesaler, so the agent in a way was the seller. I was just naive to think that the agent had my best interest in mind, when in reality he was just trying to make a sale. He did a video walk through of the house that mostly just showed the cosmetic problems with the property and talked up the house in the videos. He then assured me that the roof,HVAC, and plumbing was new and the property was “clean” and an “easy rental”. But, that being said , I still should’ve did my due diligence and got an inspection.
- 3yTheresa HarrisPro MemberMember since 2019 · 15k+ posts · 11k+ votes
That was part of your problem (wholesaler). I'd definitely report them and in the future always have your own realtor and walk through a property yourself or have someone you know and trust (which is not a realtor-someone who will be honest with you).
- Member since 2022 · 8 posts · 8 votes3yThanks for the input. I bought from a wholesaler and the process was extremely rushed so I didn’t have time to do any sort of walk through other than the agent from the wholesale company. So the only videos I saw were from that same agent. I thought that would have my best interest in mind and would try to get me a good property based on the conversations we had. I understand that I should’ve did my due diligence, and I’m going to be doing a much better job of that in the future. I was just very upset that someone could be so deceiving when trying to make a sale.
Quote from @Bob S.:
Quote from @Keoni Manago:
Does anyone have experience with an agent lying about the state of utilities at a site unseen property. I am a first time investment property owner from Hawaii investing in North Carolina. I was told my HVAC and plumbing was brand new, but after closing and getting a renter into the property found out that the HVAC needs to be replaced and the plumbing is so clogged up that the toilet won’t flush. Now, I’m paying thousands of dollars out of pocket to remedy these issues. Is there anything I can do to keep my agent accountable for his lies? Any advice will help, thank you.
Why would you close without having a team in place? I have bought and sold 100s and 100s and 100s, never a worry as we have a team in place, lesson learned,
All the best moving forward,BTW the agent should have at the minimal did a live video walk through with you, Also I assume you were not buying as is so what about the inspection?
- Member since 2022 · 8 posts · 8 votes3y
Quote from @Theresa Harris:
That was part of your problem (wholesaler). I'd definitely report them and in the future always have your own realtor and walk through a property yourself or have someone you know and trust (which is not a realtor-someone who will be honest with you).
- Member since 2022 · 8 posts · 8 votes3y
Quote from @Keoni Manago:
Quote from @Theresa Harris:
That was part of your problem (wholesaler). I'd definitely report them and in the future always have your own realtor and walk through a property yourself or have someone you know and trust (which is not a realtor-someone who will be honest with you).
Thank you, I will.
- Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes3y
Dont buy properties site unseen.
District Invest Group546 Reviews - Member since 2022 · 8 posts · 8 votes3y
- Investor · Matawan, NJ · Member since 2017 · 13 posts · 1 vote3y
@Keoni Manago lesson learned and we move on to the next deal.
- Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes3y
Sounds like expensive education.
- Honolulu, HI · Member since 2008 · 3k+ posts · 2k+ votes3y
Aloha,
Did you read the documents you were signing? There should have been at least one that stated who was being represented by the agent. In most states, you have to acknowledge that either a specific agent is representing you, or you are a "customer" only, or, in some cases a "dual" agency is created. The distinction should be very clear. In all cases, the agents must still be honest with regard to material facts they are aware of, but they are somewhat limited to what they can disclose based on who their actual client is.
Also, if you buying from a "wholesaler" for investment purposes, you are in business. Just like Commercial leases, in business,it is Buyer Beware. You are expected by the courts to be knowledgeable in your business and to rely on professional advice, with the signed contract generally determining responsibility for both parties.
- Investor · Fort Washington, MD · Member since 2014 · 1k+ posts · 1k+ votes3y
I have been seeing this more and more and more on here. I have no idea what is prompting this wave of people adopting a mentality of sinking thousands of dollars into investments they are not willing to lay eyes on. This seems to be very common these day. This business is far too complicated with extensive attributes of high risk. That alone should be a trigger to anyone not to rely on others to do what they should emphatically understand and have the ability to do themselves. I know some differ but I personally see no logical or intelligent reason to invest in something I haven´t seen. If I have no desire or ability to get to my own asset then I don´t need it. In terms of holding the realtor responsible; maybe you can rectify portions of it if you can prove it´s deliberate fraud and have the disclosures and paperwork properly lined up. However. I´m inclined to believe you will most likely uncover many more hidden deficiencies. How did these things get past inspection? In the short term I´d try to see if I can bring legal action towards the realtor/buyer, get it thoroughly inspected and try to mitigate all current and potential future problems. In the long term I implore that you visit your property as much as possible to get familiar with what you have and never buy out of town, not putting eyes on your investment. Good Luck and congratulations for taking the first steps!
- Developer · Houston TX · Member since 2018 · 423 posts · 400 votes3y
Anyone who has done numerous deals over the years has their own stupid tax story. It sucks that you are having to go through with this but as a few like @Russell Brazil and @Mark Cruse have pointed out and I keep telling newbies that real estate is not like stocks that you buy and not have to do much more. If you are going to invest out of state for GODS SACK get a ticket and visit the area, the properties, and check out things. If the person you are talking to has an interest in the deal and will make money from its sale that is not a person you should trust as being on your side. There are some honest people still out there but money can change a person. If you are willing to sign on the dotted line for a mortgage but can't pay to fly out or pay for inspection then you should invest in REITs or as LP in syndication. Too many people are reading books that tell you to buy and place a property management company and you will be making 10x your money. Real estate is not as passive as some are told. No one will manage your money better than you. Hope you get this figured out and your next investment is a home run as you learn from your recent mistakes.
Best of luck
- Real Estate Broker · Minneapolis, MN · Member since 2011 · 5k+ posts · 6k+ votes3y
Quote from @Keoni Manago:
Thanks for the input. I bought from a wholesaler and the process was extremely rushed so I didn’t have time to do any sort of walk through other than the agent from the wholesale company. So the only videos I saw were from that same agent. I thought that would have my best interest in mind and would try to get me a good property based on the conversations we had. I understand that I should’ve did my due diligence, and I’m going to be doing a much better job of that in the future. I was just very upset that someone could be so deceiving when trying to make a sale.Quote from @Bob S.:
Quote from @Keoni Manago:
Does anyone have experience with an agent lying about the state of utilities at a site unseen property. I am a first time investment property owner from Hawaii investing in North Carolina. I was told my HVAC and plumbing was brand new, but after closing and getting a renter into the property found out that the HVAC needs to be replaced and the plumbing is so clogged up that the toilet won’t flush. Now, I’m paying thousands of dollars out of pocket to remedy these issues. Is there anything I can do to keep my agent accountable for his lies? Any advice will help, thank you.
Why would you close without having a team in place? I have bought and sold 100s and 100s and 100s, never a worry as we have a team in place, lesson learned,
All the best moving forward,BTW the agent should have at the minimal did a live video walk through with you, Also I assume you were not buying as is so what about the inspection?
So this is a perfect example of getting "took". This is not an "agent" thing, it's a knowledge base thing, it is.
First thing is ANY and EVERY agent will discuss agency with you. If they don't, there trying to scam you, full-stop. There will be an agency discussion of who that agent is representing, how and when. That obviously didn't happen.
Next knowledge item is yes, I DO discuss property condition and items with person AND when I do that I say "I am a licensed Building Contractor, so I can discuss and advise....", so again there will be a clarification disclosure with such, it's required by NAR and by many jurisdictions.
The issue is you got keyed into a scammer, it really had nothing to do with agent or out-state investing other than that's where this scammer setup shop and who they are targeting. So this is a 1st hand edu in what NOT to do, how not to do out-state investing.
I have to ask, how is it any of this didn't raise the hairs on your neck and throw red-flags? That's what worries me most, you should have had a gut feel something was off.
Look, the brutal truth is in this industry, and world for that matter, NEVER trust anyone, ALWAYS assume everyone is out to rip you off, UNTIL they earn your doubt via verifiable facts. For example, asking if can talk to any former other clients. Or simply looking up past transactions somewhere. Beauty of BP is you can look up someones history, what they have word-vomited into the world. This should be instinct for EVERYTHING as an investor. Trust is earned.
I'd follow-up on it. I'd call the local R.E. boards in that jurisdiction and have a conversation. Don't let it slide, it's the bad few who give the good many a bad stereotype. Please, exercise accountability.
- 3yJewel B.Pro MemberNew to Real Estate · Lehigh Valley, PA · Member since 2021 · 352 posts · 120 votes
Quote from @Frank Avallone II:
@Keoni Manago, did you have an inspection done on the property?
OP did not
- 3yJewel B.Pro MemberNew to Real Estate · Lehigh Valley, PA · Member since 2021 · 352 posts · 120 votes
Quote from @Bob S.:
Quote from @Keoni Manago:
Does anyone have experience with an agent lying about the state of utilities at a site unseen property. I am a first time investment property owner from Hawaii investing in North Carolina. I was told my HVAC and plumbing was brand new, but after closing and getting a renter into the property found out that the HVAC needs to be replaced and the plumbing is so clogged up that the toilet won’t flush. Now, I’m paying thousands of dollars out of pocket to remedy these issues. Is there anything I can do to keep my agent accountable for his lies? Any advice will help, thank you.
Why would you close without having a team in place? I have bought and sold 100s and 100s and 100s, never a worry as we have a team in place, lesson learned,
All the best moving forward,BTW the agent should have at the minimal did a live video walk through with you, Also I assume you were not buying as is so what about the inspection?
OP did not do an inspection.
- Chicago, IL · Member since 2020 · 184 posts · 182 votes3y
Ive worked with so many agents and each one has lied.
They are sales people, and typically dont bring anything to the table.
People that rely on selling things to others for their livelihood, will lie.
i wish we didnt need agents in this day and age. Just like car salesman very outdated middle men for no reason.
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