Can I get out of a home purchase contract if I was not disclosed that the taxes on the property would increase significantly due to the end of a tax abatement?

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Can I get out of a home purchase contract if I was not disclosed that the taxes on the property would increase significantly due to the end of a tax abatement?

I am under contract to purchase a home that underwent a home inspection and is
ready to close in a week. However I just now discovered that the property has a
10-year tax abatement that would be ending this year. In such the taxes will be
going from 2,000 a year to 8,000 a year. Nobody disclosed this information to
me and I was shown the taxes of the property at the 2,000 amount. My real
estate agent admits fault here for failing to disclose this information to me.
If I can’t get out of the contract and receive my deposit, can I sue him? What
is my best course of action?

Asked on May 3, 2017 under Real Estate Law, Pennsylvania

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

Based on what you write, you most likely can get out the contract: a failure to disclose that the taxes will increase four fold (by 300% percent) and a representation that they will stay at the current level would constitute fraud, or grounds to rescind the contract (get out of it and get any deposit(s) back). (Fraud is a knowing misrepresentation--or stating A when you know  the situation is actually B--made to induce or  cause you to enter into a transaction.) To be sure, it would be good to first review all the actual disclosures and marketing materials you received with a local real estate attorney.


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