Expert: Jessica Bryan - 12/31/2009

Question
i recently put a bid in on a house that was bank owned. it was listed as having cental air (a/c) i knew going in that there would be repairs, but during the inspection it was found that it didn't have a/c it has the piping run, but no unit outside.  we brought it up to the listing agent and she said that oh well my mistake. if i want a/c i will have to pay for it. since that time the listing has been changed and the history deleted. i was planning on an addendum that basically states that i bought a house that has a/ac and would like that included in the price of my final bid.  is there any recourse for the misrepresentation of the house or do i have to suck it up. i do have a copy of the original listing that shows a/ac was listed, but how do i get the bank to look at it since it has to go through the person that screwed up and is the head broker in the company?

Answer
Dear Dana;
It is all about timing.  If the bid was accepted and then you did an inspection only to learn that you were not buying the home you  thought you were buying (i.e. no central air) Then you have the right to demand that it be included in the home and paid for by the listing brokerage.  However, if the inspection revealed this before the offer was accepted and the contract was implemented, then there is no reason that the listing brokerage can't say that they made a mistake and you can then back out of the offer or go forward with price adjustments.  Once the home closes, it is very difficult to go back and get price concessions because you did an inspection and knew what you were buying.  It is the 'Buyer Beware' issue that has caused laws to be made to protect the consumer by allowing for time to inspect and renegotiate.  It seems like the home has not yet closed, so you can adjust your offer and go forward explaining that the lack of a/c means that you will have further expense.  

Best wishes,
Jessica Bryan