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Anna, Other/Just Looking in Fremont, CA

Can we complain or take legal actions against an investment co. who sold us over--priced properties two years ago?

Asked by Anna, Fremont, CA Tue Jan 8, 2013

It is 30% to 60% overprice. We are out-of-state investors. If yes, what is the best way to do it?

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6
First, there is nothing illegal about overpaying for real estate. People get bargains and people overpay for real estate every day. The old caveat of "buyer beware" still holds true today. That said, you mention that you purchased property from an investment company, and that you are out-of-state buyers. The best thing for you to do would be to contact an attorney located in the state where the property is located (actions concerning real estate generally are done in the state where the subject property is located), because there are a lot of potential issues that come into play that need to be examined (for example, since you are out of state buyers, the federal Interstate Land Sales Act may come into play depending on the property you purchased; also, since this is an investment company, there may be both federal and state securities laws issues to deal with, depending on how the transaction was structured). Prior to contacting the attorney, you will need to gather every communication the seller sent you - emails, letters, purchase agreements, contracts, marketing materials, brochures, etc. What the seller disclosed and represented to you will be paramount as to whether you even have an actionable case or not. You will also need the closing transaction documents, and any deed instruments filed pertaining to your transaction. Gather all those up, contact an attorney, and good luck!
1 vote Thank Flag Link Tue Jan 8, 2013
Two questions....

1. Was the investment company representing you as a fiduciary or were you representing yourself in the transactions?

2. Did property values decrease in the last two years (where the properties are located) or do you think they remained stable or appreciated?
1 vote Thank Flag Link Tue Jan 8, 2013
From what you have written here and another Trulia post it appears that you bought an out of state property without seeing it. You relied on the representations of someone else. Who was that? Were you mislead…hoodwinked…lied to? Did you make a bad investment and now want to blame someone else?

In any event, an attorney can answer your questions about whether or not you have a case worth pursuing. Contact an attorney in the area where you made the investment and be prepared to pay for a legal advice unless the attorney is willing to give you a free consultation.
0 votes Thank Flag Link Tue Jan 8, 2013
George and Guy have both given good answers. "Caveat Emptor" as they say.
However - no one can guarantee the "value" of a property going forward - and if the properties have decreased in value since you purchased them - that may have nothing to do with the Investment Company that sold you the property, but due to a change in market conditions.

However if the Investment Co. "knowingly and willfully" misled you on the true value of the properties at the point in time when you purchased them - then you probably do have grounds for legal redress. The hard part will be "proving" that the Investment Co. in question "knowingly and willfully" misled you.

This is why it's absolutely critical that whenever you are making a large purchase whether it be an automobile or real estate - that you perform "due diligence" and by that I mean PHYSICALLY visiting and inspecting the property before your purchase.

I would never DREAM of even buying an automobile without physically inspecting it and having in further inspected by a reputable mechanic - let alone unseen pieces of real estate out-of-State.

Good Luck !
0 votes Thank Flag Link Tue Jan 8, 2013
I agree with Kenny, contact a real estate attorney in the same state as the properties you purchased.
0 votes Thank Flag Link Tue Jan 8, 2013
Contact a real estate attorney, that is the best place to start.

Kenny
Turtle Creek Realty
0 votes Thank Flag Link Tue Jan 8, 2013
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