Is there an adjacent parcel included in the Purchase & Sale that the appraiser missed? I've seen this before and it may have just not been communicated clearly.
If not, this should have been caught early on and I would consider asking the listing agent to reimburse you for the appraisal if you choose not to proceed. This will only be a few hundred dollars and not likely worth hiring a lawyer for.
Also, the contract states that you DID NOT rely on any advise, representations, or statements from the Brokers. It's the Disclaimer paragraph, Paragraph 14 of the 2011 GAR forms.
So the answer is No. However, if you're still in the Due Diligence period, you may get out of the contract.
I also agree with Michael. You'd have to find an attorney to take the case. Good luck.
If your agents knowledge of a property is limited to saying, "this is the Kitchen, etc, caveat emptor! Find another, they are out there. Best of luck
* If you have not closed on the contract then advise you on your inspection due diligence and contingencies.
* If you have closed review how you came to the conclusion that the property was 1 acre and verify the appraisal facts. Could it be 1 acre but only 1/2 usable, etc...
* You could hire someone to do a formal survey to determine the boundaries. And as mentioned in one answer are all parcels included...
* The bank who loaned you the money is only a financial party to the contract so it would not make sense to sue them.
* If you relied on a statement from someone regarding the property size, would you still have purchased it if it was a size other than stated and can you still use the property for it's intended use.
* In any lawsuit, you will need to prove damages, and what amount are those damages? Depending on the laws of your state and what was in your contract if you are unable to prove damages you may be out money for the other parties attorney fees and their damages as a result of your law suit.
* Do you want or need to go down that path?
* Consult a Real estate attorney.
First, Iâ€™m not an attorney, so Iâ€™d be curious to hear from one. Personally I donâ€™t consider disclaimers a license to lie or be lazy. If I were listing a property and was told it was 1 acre, my standard review of the Legal Description, title and public records would quickly confirm if it was in fact a full acre, almost an acre or just over. But to miss by half seems egregious to me.
The damages are likely limited to the cost of your appraisal. I would definitely talk to your agent who could have caught this early and the listing agent. Either there is another parcel that the appraiser missed or everyone dropped the ball and perhaps the agents should make you whole.
In re law suits, other folks have already said what I would say, so I'm more interested in how the mistake happened
1. Do you have a Buyer's Agent? If so (s)he should be doing simple due diligence on issues like this before you present an offer. If you did not have one, my suggestion would be to hire one before you continue your search.
2. Is there any chance the Appraiser is wrong? Fannin County's online tax records are not the most accurate in the world. If the appraiser is relying on what they saw there, they may be relying on inaccurate info.
And a comment: The technology used to establish the boundaries and size of a piece of land have changed dramatically in the past 25 years. Surveys done today frequently come up with different numbers than those done 20 years ago. Personally, I've never seen one that was off by more than 15%, it's certainly possible. The possibility of human error is one of the prices we pay for being human.
I think an important fact has not been addressed. You went under contract based on your visual of the home and its yard. By your visual it appears that the home and its yard met your requirements which is why you brought forth the offer to begin with. Am I correct? The acreage or the square footage does not change the fact that you liked the home and its surroundings to bring forth an offer and go under contract. That visual has not changed and is still there for you to enjoy. Has your love for the home really changed based on this discovery?
There are protections within a contract to give you, the buyer, the right to terminate. I hope that you completed your due diligence within that period which would include an appraisal. If so, you have the right to terminate.
Regardless, If you love the home move forward. The land does not really add additional value to the home unless it could be divided, made its own lot, and built upon. Land that cannot be built upon does not really bring additional value. I am sure the size of the lot did not impact your appraisal.
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