Unethical? Unlawful? Lost 15 Square feet 1 month after buying a condo!!?

Question

We recently bought a brand new condo with 800 square feet in NJ. After moving in for 6 weeks, we were informed by our lawyer that the square footage calculations previously provided to us were incorrect and according to the corrected calculations, my unit now is actually 780 square feet. From the start, we were not only informed by the seller’s realtor, the owner of the building, but also the appraiser hired by the mortgage company that it has 800 square feet. We feel we were mislead. If I knew the condo was smaller, I would have adjusted my offer price accordingly.

We talked to our lawyer and he said that we don’t have a case because the master deed somehow has the correct square feet. Is there anything I can do now? It's unethical and unfair to first home buyer like us. Please give me some suggestions. Thanks.

Thanks for all the suggestions. I know it's only 20 square feet (sorry not 15). But in Hoboken, NJ (next to the NYC), when a typical new condon costs over $700,000, losing 20 square feet is costly. So we paid over $8500 per square feet. Do the math. It adds up. I am a first home buyer. I guess I'll learn from this mistake and move on...

Answer 1

First did your lawyer measure your condo and if not where did he come up with 780 sf? Before you flip out measure it length x width and find out. 2nd for an appraisal will not be based on $875 per sf. (I did the math) it does not work that way. Depending on quality of construction on the high end maybe $100-200 per sf at max most of the time it will be closer to $50 per sf. Your condo did not cost $875 per sf to build you just paid that much. Look at it this way would you pay $17,500 for 20 more sf (that is an area of 4'x5'), no you would not and a appraisal would not work that way. It sound like the only person that measured it was the appraiser so I would guess he is right. County records may be wrong and they are a lot of the time. Your not talking about a lot of money difference here at the most a couple of thousands not hundreds of thousands. Hope this helps you understand a little better.

Answer 2

Did you have it inspected by a home inspector? I'm sure you did. One of the jobs of the inspector is to personally measure it to determine that actual square footage. In addition, the appraiser should also have measured it. If these professionals were wrong, then you could (and should) call them up and ask them how they arrived at their conclusions regarding square footage.

Also, why don't you buy a 25' tape measure and measure it yourself? It's not difficult to figure. Remember to only count heated space. And of course you would count all the closets. Closets don't have to have a direct heat vent if the door opens to a room that does.

Also, 800 minus 780 is 20, not 15.

Answer 3

You have the right to measure it yourself before close. If you did not I'm sorry. I don't think 15 square foot is going to make a difference in price. Usually up to 200 and even as much as 500 square foot difference is acceptable when comparing properties, unless that 15 square foot is noticable upon entering two like properties with similar square footage. I can't imagine 15 square foot would be noticable. Life is short. Don't sweat the small stuff.

Answer 4

If you bought it from an individual, who, in good faith believed that it was 800 sq. ft. because that's what they were told, you're stuck.

But, if, by being a "brand new condo", you mean that you bought it from the developer, who's lawyers are responsible for the master deed, then they knew the true information and did not pass it on. This probably does not justify reversing the sale after closing, but you have grounds for a cash settlement. Your lawyer knows this, but told you differently because the cash award would be so small that he couldn't make much money as a fee.

Answer 5

3 other appraisers can give you square footage and all differ slightly. One may have measured the closet space another may not.

Somewhere in that paperwork from the real estate agent is a statement that says info is believed to be correct but not guanteed or similiar language.

Enjoy your home and stop fretting over something you can not change.

Answer 6

I believe your county assessor should have the correct information concerning properties. If they made a mistake maybe the county or city could be held responsible. The only problem is that the difference in square footage isn't a big difference and they may only want to credit you a small amount.

There has to be some legal department state, city, county, etc. that HAS to record the property information correctly, in order for it to be public information to realtors, title companies, sellers, buyers, etc.

Answer 7

did you have a title opinion prepared for the condo? if so and the TO states that you have 800 sq ft and it was certified by the title company, then you do have some recourse. Contact the title company and double check. If the TO has the correct sq footage, then you are pretty much out of luck and have no recourse.

If you didn't get a TO, you may have to bite the bullet, that is why I always suggest to my clients that they get a title opinion and insurance.

Answer 8

"$700,000, losing 20 square feet is costly. So we paid over $8500 per square feet"

$700,000 for 780 square feet is less than $900 per square foot, not $8500.

Answer 9

You have buyer's remorse. Big whoop, 15 feet. If it was on the master deed, it was there for you to see before you purchased.

PS--- what good is your lawyer if they are only now telling you this? Where were they when you were making the offer?

Answer 10

15 square feet is not that much, really. Calm down and enjoy your new home.