Can I file suit to be releasedfrom the mortgage by the developer/builder/realtor if material misrepresentations were made?
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Can I file suit to be releasedfrom the mortgage by the developer/builder/realtor if material misrepresentations were made?
I purchased a home from a builder who represents himself as the realtor of the properties. I purchased with the understanding there were amenities (pool, playground, basketball court), a homeowners association with fees of $300/year, and restrictions/covenants for the neighborhood to abide by. After doing a title search, we have realized that none of the lots in the community were encumbered and are not obligated to the HOA fees/restrictions, etc. The developer represented the community with all these things, even paid my first year HOA fees, only to find out that it isn’t legal.
Asked on August 9, 2011 South Carolina
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
Whether or not the misreprensentations that induced you to purchase the home that you did amount to be so significant to warrant your rescission (cancellation) of the property needs further research to be given an opinion as to your request.
The laws in many states in this country concerning property damages for new construction resulting from physical defects or misrepresentations as to the unit purchased is the "difference between what you received and what you paid" or "the difference between what you received and what you expected to receive".
To start your analysis as to damages, you need to first start with your baseline purchase price. You then need to retain a licensed appraiser to establish whether or not your purchase price exceeded the fair market value of the property acquired in its condition with the amenities as represented as if in place and the amenities as represented as not in place.
The appraiser will then establish valuation numbers to determine the degree of differential if any between the purchase price you paid and what you expected to receive with respect to the represented amenities.
You should consult with an experienced real estate attorney concerning your situation.
Good luck.
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