I am my own real estate agent and I recently got a property under contract. The description the selling agent added on the MLS said the property was rentable via Airbnb. When I asked for the bi-laws he dragged his feet. I had to do a bunch of work to get the HOA bilaws on my end, the manager of the HOA has a phone that has been disconnected, turned out the treasurer was running things for the most part and she provided bi laws after the discovery window (though these were requested within the window).
I was paying a premium because the listing was advertised as AirBnB friendly, now the property does not make sense at that price and they are not open to renegotiate. I explained to the selling agent that had they not advertised it as such, or been more helpful during discovery we wouldn't be in this situation.
The selling agent says because the GAR (my MLS board) states in the contract that: "
Section B. Paragraph 10. c. "Disclaimer: Buyer and Seller have not relied upon any advice or representations of Brokers other than what is included in this Agreement.
He is totally absolved of the fact that he described the property incorrectly. Is that true? My inclination is to take him to small claims court the $2,000 deposit plus the $535 appraisal fee.
Any advice would be greatly appreciated!
Talk to your broker. S/He will have the best advice for you.
@Nick Fitzpatrick That's the first place I went. Broker is not sure what to do in this case. She has never been in this situation before. Wanted to get some outside opinions.
That is a tough spot. I am not a an attorney, so consult one if you wish this is just my advise. My first thought is you should have extended your due diligence period if you didn't have all the information you needed to make a decision by the end of your due diligence time period. You could have also put in a special stipulation stating your offer was subject to no rental restrictions or more importantly no short term rental restrictions. I have seen a few condos that do not have "rental restrictions" but if you read their declarations it says no restrictions on leases that are more than 30 days, meaning they have a restriction and a right to enforce and prevent short term rentals(AirBnB). This is why I stress to my clients that are interested in townhomes/condos that they need to review all HOA information within the due diligence time period. This includes declarations, covenants, bi-laws, and most importantly financials.
As it sounds like this was not done durning your offer process and you actually terminated after your due diligence period the seller is probably entitled to some liquidated damages. So I would see if they would be willing to give you some money back but in the end you may have to chalk the whole thing up to a learning experience. Tuition to the school of hard knocks is expense, you didn't know now you know. $2,535 is an expensive lesson but maybe it will save you from making the same mistake on a bigger deal.
Dang, it sucks to hear that.
I would think they would at least be partly on the hook. I have proof that they listed the property incorrectly. Does that not count for anything?
My first step would to be to look at the bottom of page 1 of the f20(p&S) and check on representation. The other brokers point is that they didn't give you any info outside what is in the contract. Since you said you're a licensed agent, you are likely representing yourself as a client. From that point I'd look at the F55 (Community Association, Fees, Disclosures and Related Issues) to see if anything is noted there. I don't want to give advice when I don't know everything, but if all pertinent information was disclosed and you didn't come up with an objection in due diligence, that's likely on you.
I am not an attorney the above is not intended as legal advice.