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  1. #1
    Join Date
    Jun 2009
    Posts
    3

    Default Ad Contained False Statements

    My question involves real estate located in the State of: Michigan, USA

    I just bought a house on a beautifully landscaped lot. The lot to one side and to the street is bounded by a berm with trees on it. After I moved in I learned that the landscaping included part of the neighboring lot, so a big chunk of what I thought would be my backyard actually does not belong to me. Even the patio, to which a paved path leads from th back of my house, belongs to my neighbor (he has to climb over the berm to access it).
    My buying agreement certainly contains a legal description of the lot lines, and so did the ad of the house. Due to the landscaping it seemed pretty obvious to me that the berm is the border so I did not bother to get a survey done (and it was not requested by the bank selling the house).
    My question: The advertisement of the house is wrong because the stated lot size does not match public records and the patio is listed as a feature. Can I hold sb. liable because of the false statements, even though the ad contains a (valid) legal description of the lot?

  2. #2
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Ad Contained False Statements

    You're talking about the ad... But what does your purchase contract say? What contingencies did you reserve in relation to inspection?

  3. #3
    Join Date
    Jun 2009
    Posts
    3

    Default Re: Ad Contained False Statements

    Thanks for your expeditious response.

    My purchase contract just gives the cryptic legal description of the lot. It does not say anything about anything on or connected to the premises.
    My contingencies about inspection are standard: seven days time period after acceptance of offer, if not satisfied with result of inspection EMD will be refunded in full.
    But like I said, I did not commission a surveyor, and I found out about the actual lot lines after I moved in.

    I am talking about the ad because if I would have known before about the actual lot size and lot lines I still would have made an offer, but surely at a lower prize.
    When a listing agent places an ad, is he required to check the facts about the property he is advertising? Is he or the seller responsible for misleading statements? I am not talking about sugarcoating the house condition or other amenities which everybody expects but about false data which are not changeable.

  4. #4
    Join Date
    Mar 2005
    Location
    Michigan
    Posts
    28,906

    Default Re: Ad Contained False Statements

    Is the agent required to commission the survey you, yourself, deemed unnecessary? No. The agent can rely upon the reasonable representations of the seller. It's possible that the seller was mistaken about the property line, and didn't intend any misrepresentation. What's the source of the berm? When was it constructed? What does your neighbor say about his historic understanding of the property line?

  5. #5
    Join Date
    Jun 2009
    Posts
    3

    Default Re: Ad Contained False Statements

    Aaron,
    I know I made a mistake by not getting a survey.
    Like I mentioned above, the seller was a bank. I do not think that banks provide reasonable representations. So where does the listing agent get his information from? Probably from an on-site inspection, just like me...
    I asked my agent if a survey is needed and he told me that in his opinion we are good without. This is the first house I bought, I am not an expert, I relied on the people making a living on that.

    The original owner was fully aware that he used a good portion of the adjacent lot for his landscaping for he used to own both lots.
    My neighbor told me that he talked to every real estate agent he saw during the time the house was listed to clarify the lot lines. My agent and the listing agent both denied a conversation with him. I saw my neighbor a couple of times before I bought the house but he never bothered telling me.
    I certainly cannot hold him liable for not sharing his knowledge with me.

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