Expert: Karyn Foley - 1/25/2012

Question
Dear Karyn,
I bought a foreclosed as is property in Jacksonville fl.
The listing agent listed the property "...public sewer...", which is an important part in my purchase decision. If the listing described "sewer condition unknown" or "septic sewer", I would not have even checked the property, let alone buying it.
After the closing, I found out it is a septic sewer. As a matter of fact, the city's public sewer system is not even available at the area where the property locates.
What responsibility does the listing agent hold on this?
Thanks!
May

Answer
Dear May:
 What a dreadful surprise!  And, unfortunately, the answer I have to give you is going to be ambiguous.  
 As it was a foreclosure, it was obviously owned by a bank who followed protocol and gave the listing to an agent.  Banks are notoriously known for their lack of being forthcoming, or saying they don't know anything, and that they relied on their agent.  The agent certainly did not do due diligence, but my question is where you saw the words "public sewer".  What this in an ad what this
in the multiple listing, or was this on the listing information flyer that was handed to you?  On listing flyers, there is usually  a disclosure stating something like all facts are not necessarily reliable and buyer needs to check out and verify.  If that is the case, you should still try and go after the listing agent and probably the bank as well.
 Another question is with reference to a home inspection.  Even though many or most bank-owned properties are sold in their present condition, a buyer is still entitled to a home inspection; a very wise, prudent move that was hopefully done or suggested to be done by your agent who represented you.  The home inspector should have pointed that out.  Also, in most states there are
mandatory information sheets and disclosure sheets that should have highlighted the subject of sewers.  Again, check with your agent.  
 (There are two agents usually involved in a transaction:  Listing Agent who represents the seller and the Selling Agent who represents the buyer.  Many times the Listing Agent acts as a Dual Agent representing both seller and buyer.  Frankly, the Selling Agent usually relies heavily on the Listing Agent for material facts - and a sewer issue is certainly a material fact!)
 Frankly, I would go after as many of the parties involved as possible.  If you wanted more assistance and direction for what is
germane in your state, call a real estate attorney and arrange for an initial visit.  This would give you valuable help.  Perhaps you can hire one who would work on a contingency basis. There are options that can be discussed if you indeed "have a case".
 There is always the option of a small claims suit.  However, small claims courts do not settle for large amounts.  We real estate brokers cannot practice law without a license, so I cannot discuss various options of a law suit with you.  
 It couldn't hurt to call the manager of the office where the listing agent works and discuss this with her/him.  Agents and companies have errors and omission insurance.  Take a good look at the contract you signed as it may mandate some dispute resolution sessions in order to avoid a major law suit.
 I would not let it drop if it were me, and I am pretty easy going in most cases.  This is not something that can easily and inexpensively be changed by the buyer, so you indeed may be harmed.
 Good luck and I hope you prevail!
KARYN FOLEY
that states that a