Home Selling in 85014>Question Details

dxyz678, Home Seller in Denver, CO

My broker misrepresented our house in MLS shows AC, our seller disclosure says no AC, and they buyers are thinking of cancelling misrepresentation.

Asked by dxyz678, Denver, CO Mon Dec 2, 2013

Do I have grounds for lawsuit to sue our broker, if buyers cancel because of his error? Don't realtors have to carry errors and omissions insurance like mortgage people do?

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Answers

9
As stated below you can sue anyone for anything, but whether or not you can win, and if it's worth your time, money, and energy is another matter.

A/C is fairly evident when A. walking through a home during the 1st or 2nd visit, and B. would be certaintly caught during the inspection (assuming one was done). I am frankly a little surprised that you got through the negotiation and came to terms on price etc. before the the buyer realized there was no A/C unit, but I don't know the full details to the situation.

That said, if there is an inspection contingency and you are within the inspection period a buyer can theroretically cancel for virtually anything. Also, as stated below, typically the MLS contains a disclaimer that typically states something to the effect of "The information is not 100% reliable" - basically meaning that it's up to the buyer and their agent to verify everything and not trust the MLS information "blindly".
1 vote Thank Flag Link Tue Dec 3, 2013
You should speak with the agent and/or broker that has your home listed for sale to get this corrected. You should thoroughly review the MLS listing to make sure that the information listed there is accurate.
0 votes Thank Flag Link Thu Jan 1, 2015
You should take all of your documents (listing contract, disclosure, purchase agreement etc...) to a real estate attorney to address this issue.
0 votes Thank Flag Link Tue Dec 3, 2013
The agent most likely made a mistake when entering data info to the MLS. There is a public disclaimer that the information in the MLS is reliable but not guaranteed. Buyers should verify all information., and , buyers have the right to cancel during their inspection period if something is found that does not meet their needs, . I always give my sellers a copy of the MLS once entered so that they can review the information and make corrections or additions if needed, When you filled out the Property profile sheet for your agent was this item perhaps mistakenly checked??? While I am sure you are upset, I feel sure the agent only made a mistake and certainly did not intentionally misrepresent you. You do however have the right to file a lawsuit, and only a lawyer can tell you what your chances are in this case. I would also advise you to speak with the agents broker, perhaps something can be worked out to go forward with your deal. Best wishes. ...
0 votes Thank Flag Link Tue Dec 3, 2013
Thank you, and all of your for the good replies. This is our first time selling so we didn't know to ask for a copy of what MLS says. Our seller disclosure was correct, no AC is marked just the agent entered MLS was wrong
Flag Tue Dec 3, 2013
Each MLS states that the information is not guaranteed. I am not sure they buyer has a right to cancel and get earnest if the inspection period is over. By the way the Broker probably did not misrepresent your home.. they may have made a mistake but you have the right and should review everything that is placed on the MLS..
Best of luck,
Brad
0 votes Thank Flag Link Tue Dec 3, 2013
Anyone can file a lawsuit, winning is another topic. Only an attorney can give you advice as to what action you should take in that regard.

If you actually want to sell the house why not work it out so that you attract the correct buyer and move on. Ask the Broker for a break on some fees or something to offset what you feel is an error and get the house sold.

Often times attorneys are the only winners in a lawsuit.
0 votes Thank Flag Link Tue Dec 3, 2013
Your best bet would be to get the advise of an attorney that specializes in real estate law.

Depending on the cost of the A/C as well, you might consider purchasing it yourself and ask the agent to contribute to some of the cost.

It really depends on the price of your home and how much you would net after buying the system, and if it would fit into you financial situation.
0 votes Thank Flag Link Tue Dec 3, 2013
Somewhere on the MLS listing there is likely a disclaimer that reads something like this. "Information deemed reliable but not guaranteed. Parties are advised to verify." What this means is that mistakes are sometimes made.

The presence of information doesn't insure your agent is the responsible party.

Did your buyer sign a "seller's property disclosure" on which you stated, "no AC?" If so, I would base my position on this information......

Good luck,

Bill
0 votes Thank Flag Link Tue Dec 3, 2013
Only an attorney can advise you of your legal rights and whether you have grounds to sue, but they will also likely advise you of the potential position the other side may take, which in this instance is: how much were you actually harmed by having these buyers take the house off the market?

All the best,
0 votes Thank Flag Link Mon Dec 2, 2013
Thanks again. Not sure about the format of this board here goes. After thinking it through last night what I feel would be appropriate is this.

AC is probably 3-4k. We pickup half, and their broker eats half because he should have notified them of the discrepancy between our seller disclosure and MLS.
Flag Tue Dec 3, 2013
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