real-estate-lawsuit

This months New England Real Estate Journal has an interesting article regarding a lawsuit that was filed by a homebuyer against a Century 21 real estate agent and his seller. The issue at hand was the real estate agents MLS listing show sheet with regards to the square footage data.

On June 30, the Court issued an Opinion in Bowman v. Presley (this case was in Oaklahoma) which reversed prior rulings and permitted a lawsuit by the buyers to go forward against both the sellers and the listing REALTORS® in a dispute over square footage. REALTORS® who listed a house for sale with a stated square footage “per courthouse records” now have to defend, along with the sellers, the square foot amount even though they were just passing information on to buyer, according to a decision in a civil lawsuit brought by the buyers in Pottawatomie County.

The house at issue in the lawsuit was listed in 2005 as having 2,890 square feet, which matched the County Assessor ’s data. The house was listed for sale by a REALTOR® who was also the mother of the seller. After closing, the buyers obtained a copy of their lender’s appraisal, which measured the house size at less than 2,200 square feet. The buyers also obtained an appraisal completed for the sellers five years earlier, from the same appraiser, which had also stated that the house was less than 2,200 square feet. A third appraisal by the same appraiser, also five years earlier, had indicated that the house was 2,468 square feet. With so many different figures, the Court ruled that the issue of the house’s actual size was unclear.

The REALTORS® argued that the buyers had signed closing releases and had ample time to inspect and measure the house before closing. The REALTORS® asserted that the listing information accurately quoted the Pottawatomie County Assessor’s data for tax assessment purposes and that the MLS listing included a disclaimer that the data presented might not be accurate. They also asserted that the purchase contract itself contained a disclaimer acknowledging that the REALTORS® would not be held responsible for inaccurate square footage information.

In its recent opinion, the Court held that the particular facts of the case raised a question of whether the REALTORS® had misrepresented the property size “unreasonably, recklessly or dishonestly.” Bypassing the several disclaimers and releases, the Opinion implies that passing along inaccurate square footage data allows a negligence claim based on the licensee’s duties pursuant to the Real Estate License Code regardless of any contrary express contractual terms. The Court’s decision allows the buyers a trial even if they saw a disclaimer by letting them challenge whether the REALTORS® knew or should have known, in the exercise of “reasonable skill and care,” that the courthouse information quoted in the MLS listing was inaccurate.

File under: cavet emptor & broker beware

Author Profile

John Ford
John Ford
EXPERIENCE

Over the course of 20 years in the Boston downtown real estate market, John represented and sold numerous, condominiums, investment and development properties in Greater Boston and in the surrounding suburbs



In addition to representing Boston condo buyers and sellers, John is currently one of the most recognized Boston condo blog writers regarding Boston condominiums and residential real estate markets. John's insights and observations about the Boston condo market have been seen in a wide variety of the most established local & national media outlets including; Banker and Tradesman, Boston Magazine The Boston Globe, The Boston Herald and NewsWeek and Fortune magazine, among others.



HISTORY

For over 24 years, John Ford, of Ford Realty Inc., has been actively involved in the real estate industry. He started his career in commercial real estate with a national firm Spaulding & Slye and quickly realized that he had a passion for residential properties. In 1999, John entered the residential real estate market, and in 2000 John Started his own firm Ford Realty Inc. As a broker, his clients have come to love his fun, vivacious, and friendly attitude. He prides himself on bringing honesty and integrity to the entire home buying and selling process. In addition to helping buyers and sellers, he also works with rental clients. Whether you’re looking to purchase a new Boston condo or rent an apartment, you’ll quickly learn why John has a 97% closing rate.

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Contact
John Ford and his staff can be reached at 617-595-3712 or 617-720-5454. Please feel free to stop by John's Boston Beacon Hill office located at 137 Charles Street.




John Ford
Ford Realty Inc
137 Charles Street
Boston, Ma 02114

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