Thread: legal recourse for listing mistake?

As a former agent you should realize that the buyer and or buyer agent needs to verify any and all info that may be important to the buyer.

More than likely the listing has a disclaimer that states info is deemed reliable but not guaranteed, and the agents, brokers and the RE companies are not liable for mistakes; and that the buyer is responsible for verifying all information. Not only that, but since it was a foreclosure, buried in the bank's addendum was probably another disclaimer similar to this.

Sorry

"Information deemed reliable but not guaranteed"

"Information deemed reliable but not guaranteed"

This phrase is used by a lot of agents as an excuse to be less than accurate when they put info in the MLS. This phrase will not protect them in court. If it did then there would never be any lawsuits against listing agents and we all know agents get sued and lose all the time.

The bank addendum only protects the bank and not the listing agent who made the mistake.

When you say "more desirable" it leaves a lot open to interpretation. Was the school district different at the time you made the purchase? School district boundaries change.

Does the difference between the 2 school districts affect the actual value of your property? How much? Did you pay too much because of this discrepancy? How much? You will have to prove an actual monetary loss to be able to claim damages and the loss will have to be more than your cost of suing.

If this information was important in making the decision then the buyer or the buyer's agent should have confirmed it. As a former agent the OP knew to confirm any information that is important to them. That is why part of my disclaimer says "the buyer and/or buyers agent to confirm/verify any and all information that is important to the buyer, including but not limited to SF."

Does using my disclaimer mean I will not be sued by a buyer that did not confirm/verify information that is important to them? No, but it does show I was not guarantying anything. If it is important to a buyer, they need to double check BEFORE buying and not rely upon litigation after the fact.

Maybe if the buyer was represented by a buyers agent and specifically told their agent in writing that school district was important to them I could see the buyer having a good chance for winning.

A good lesson for buyers and buyer agents is to specifically state what is important to them and to confirm/verify for themselves, instead of relying upon information that is "deemed reliable but guaranteed".

"More desirable"? More desirable to whom?
How can something that is so subjective be deemed a listing mistake? What factual error has occured?

Interesting topic...definitely have to do all of your own homework, as the infomation is not 100% reliable...but as Malcolm stated, seems a bit subjective for a listing mistake.

Originally Posted by malcolmjohnston

"More desirable"? More desirable to whom?
How can something that is so subjective be deemed a listing mistake? What factual error has occured?

In some areas, school districts can significantly affect the value of a property with no subjectivity involved. People will pay through the nose for a good school district over a bad school district and prices reflect this.

Another thing to remember is there may have been a non reliance clause in the contract. But none of this means the OP can't take someone to court, but instead that they need to speak with a real estate attorney in their state and have the attorney look over the contracts, addendums, and closing paperwork. Get a local attorney to tell you how good a chance you have of winning, how much this will cost you etc.

Originally Posted by Greg

When you say "more desirable" it leaves a lot open to interpretation. Was the school district different at the time you made the purchase? School district boundaries change.

no, the district boundaries have not changed. By more desirable I mean much newer facility, better test scores, much less violence and drugs

Originally Posted by Greg

Does the difference between the 2 school districts affect the actual value of your property? How much? Did you pay too much because of this discrepancy? How much? You will have to prove an actual monetary loss to be able to claim damages and the loss will have to be more than your cost of suing.

Yes, I think it will affect the value. My neighborhood is part of a much larger development. Homes in my neighborhood range from $160-180K, the other homes in the better school district range from low 200s to 1 million +. but they are larger, nicer homes in the better school district.

I would of offered maybe $5k less and used that fact as a bargaining chip if I had known It was in the less desirable school district, but I still got a fairly good deal on my house at that time.