I suspect you could cancel the contract but you should ask an attorney. (perhaps not the one given you by the agent if you feel they too knew)
The real question is if you want the place or not and if you have any damages if you should back out now. (again speak with an attorney)
If the seller misrepresented items on the sellers disclosure, you have every right to address them with the your attorney. When this document is filled out, the seller fills it out to the best of thier ability, the Realtor is not involved. A sellers disclosure is just that, a documentthat asks the homeowner questions regarding the property, your Realtor, dual agent or not is not part of the sellers descision on how they answer these questions.
If there are issues with what the seller has answered, these items should be addressed with your attorney and brought to the attention of the sellers attorney to come to a resolution.
This is not a dual agency problem. At this point it sounds as if you are either under contract or in attorney review, this is the time to address these questions. Your Realtor should be notified of the problems and he/she can address them also, but the determination will come as your attorney address these issues for you to with seller's attorney.
Feel free to call with any further questions and I will be happy to help or find the answers you may required.
I know this is an old question, but to address the recent answer.. this is not a dual agency issue at all on any level.. You should have had an inspection andthe issues raised to your attorney through inspection. there is nothing that the listing/ dual could have done and dual agency has absolutely no bearing on this issue at all.
You ahve a home inspector and an attorney in your corner aside from the agent. Once a contract is negotiated and something such as this comes up, which is in the sellers disclosure. You need to address it, of course through your relator and your attorney.
The name of the document is a "sellers disclosure"
This is another reminder of difficulties encountered by the customer when dealing with "dual agency."
Have you had the property inspected? It may be beneficial to bring your concerns to the attention of the inspector for his/her review and response. If these issues are relevent and should be repaired they should be included on the inspection report.
Hoeever, if the issue is a major one, it would be best to have an in depth converstaion with the attorney, who's allegience should be to you.
Both your agent and your attorney work for YOU! MANAGE the process. If you cannot, ask a friend (male, preferrable) to give the directives that you wish to express to all parties.
All agents in NJ are dual agents and at the beginnning of the process your agent declared her/his affliation through the CIS booklet. You should have been explained the law of agency and signed the back of the booklet (you shold have a copy).
First, you must differentiate between "harmless trade puffery" and lies. Once you've gotten that far, you must determine if the lies are deal breakers. Do you really still want the property? Your dual agent is not your agent but the whole office! Yes, your contract is with the office, NOT the agent. They are ALL dual agents. A dual agent can and, indeed should, bring EVERY fact about the property to your attention. The dual agent cannot bring out in the open known incentives and emotional feelings that the two sides wish to keep secret. For example, you are able to afford, let's say $400,000 but offer only $350,000. The $50,000 that you COULD afford can't be disclosed. If the reverse is true, and you are well over your head, this gets into the fraud range, and the agent should tell the other side that his client cannot qualify. The actual fact is the issue here. Same thing with the house condition. If the agent relies on the seller to state the roof condition, he may not KNOW that a roofer has patched and patched for months or years. He's not misrepresenting anything but the seller is.
So, having a good idea of where things stand and a little bit of knowledge of the profit motive and human nature, we get to where you are today. I assume you have a contract. I assume somebody has told you (a knowledgeable someone) that the FACTS are not exactly as presented. What can you do? If still in the inspection phase, ask for remediation of the defects. If beyond that, talk to an attorney who will represent your interest, not to one who is collecting a fee. A good attorney will be able to tell you what you might be able to do. You've probably got a deposit up. While you SHOULD be able to get it back if the deal falls through, ultimately that too is a court decision. (Courts =$$$, yours.) You may wish to walk and attempt to get the deposit back but just walk away may be economically a better deal. On the other hand, the seller is in a poor position to force a closing and if you dispute the whole deal and he doesn't settle, it will cloud any other deal he might make.
The whole thing boils down to money and whether you want the property that you have discovered is different then you thought. The bottom line is that there has not been a meeting of the minds and the deal is voidable, if you can convince a court of that fact. The better approach is to get a meeting of the minds.
If your agent has been unresponsive, call his manager. Quite often, managers are more interested in the firm's public image than the agent's well being and if it would appear the at the agent has missed a fine point or two, the manager may come down hard on your side. Lots of Luck.