Real Estate Legal Advice: Square footage grossly misrepresented by Realtor?

Question

We purchased a 2 story home, in OK, that was listed as having 2890 sq ft. The home was built in 1973 and needed some major updating. We thought we were getting the home for $51 a sq ft. After living in the home for one month we finally got a copy of our appraisal and to our SHOCK the home only has 2187 sq feet! Did I mention the realtor was the seller's mother? This was a GROSS misrepresentation. Anyone know OK law that can give us some advice? The county assessor's records were WRONG. We found out the home had only sold one other time and it was listed at APPROX 2400 sq ft then. It turns out the same appraiser did the appraisal for the previous buyers and he said, "The house didn't grow." What do we do now? We just lost about $40,000 and this is a nationwide realtor. Our previous home (our first) was only 1200 sq ft so this one seemed WAY big to us.

I also forgot to mention that is 703 sq ft short of what they advertised. AUGH!

Answer 1

Submit a complaint to the local Board of REALTORs Professional standards committee.
The Local board will get you the money if there is money to get.

Most if not all the time it’s faster, cleaner, and with very little cost to you. Most states courts also hold to the Professional standards committee’s decision if you need to go for a judgment.

Sorry not all REALTORS have money to pay for these type of damages. Most STATES have a recovery fund you can also go after if the licensee doesn’t come up with the funds. Good luck.

Answer 2

I think you're out of luck, sorry. Why? Because before you bought the house, you had a chance to inspect it. You could have measured it, even if you didn't. This is not a hidden defect--the fact is, you saw exactly what you were buying before you bought it. This is what "settlement" is all about: you settled all issues regarding that house. Now it's too late.

You might still be able to file a complaint against the realtor with the state Real Estate Commission. You should send them the ads, together with photos, the appraisals, and your own measurements. Before you file with the Commission, you could notify the realtor of your complaint and tell him what you're willing to do in order to resolve the matter informally.

Answer 3

First, I am sorry that you experienced this situation. That being said, I don't think you have a case to take to a court.

In my state, our statewide realtor's association's legal staff advises ALWAYS providing the square footage of a home based upon the local assessment determinations. While these records are not always correct, the records are publicly available and are considered the best available source of the information.

There have been a couple of court cases here similar to yours and the courts have not found favor with the plaintiffs. A realtor is expected to reasonably provide information concerning the 'prospectus sheet' covering the property, but does not guarantee the accuracy of such information.

Frankly, I think your realtor should have realized that the footage was incorrect, since you are talking about 700+ square feet of living space, which is the equivalent of a 20x35 room missing. However, the same applies to the buyer in such a situation.

Unless you are prepared to prove that the realtor INTENTIONALLY and KNOWINGLY misstated the square footage, your chances of redress are slim. Since the realtor can always point to the assessor's square footage measurements as supportive evidence, you won't be able to prove misrepresentation.

This is one very sad situation, but I think you're out of luck on this one legally.

Answer 4

The best advise when it comes to legal advise is to seek an opinion by a real estate attorney in your state.

The square footage appears to be a major misrepsentation and the agent and seller may have some liability issues.

Agents and brokers often have error and omissions insurance E & O.

Seek the advise of an attorney, and they may explore with you mediation or binding arbitration or litigation.

Please review your contract and disclosures.

Best to you.

Answer 5

Look into the complaint/violation process with the OK Real Estate Commission. The state commission should have a fund that will cover damages for a successfully charged violation.