Expert: Dick Dennis - 8/10/2006

Question
Thank you. We were naive enough to buy this house advertised as a 3 BR, so there are people out there! We didn't know about the window rule.
Do you think I can reasonably ask for our contract to be cancelled, without being penalized somehow?
Thank you again!
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Followup To

Question -
Hello; I have had my house up for sale with a realtor for 10 weeks. Although we bought it advertised as a 3BR home, we later found out that it is a really a 2BR home with a study in the basement. (No window in basement BR, so it can't be classifed as a BR).
After a few weeks of it being listed I noticed the agent had changed the listing to read a 3 BR home without telling us. His first explanation was that we had a walkout in the basement so it was OK to list it as a 3 BR (though the walkout is not in the bedroom!) Then when I questioned that, he said it was "technically" not a BR but "functionally" it was, so it was OK. According to him, his manager was the one who advised him to change the listing is my understanding.
There have been other issues - lack of advertising, getting our address wrong in initial advertising, etc. I would like to cancel the contract but am thinking that his management, having given this incorrect (and unethical?) advice to him, would side with him and not us.
Am also wondering your opinion on filing a formal complaint for unethical practices with the state.

Answer -
You would not be filing any complaint with the state department of real estate. You would file it with the local Board of Realtors. It would seem they have violated the Realtors' Code of Ethics. What they have done is committed you to a possible law suit from the buyer, although I can't imagine how someone would buy your house without noticing that your basement/bedroom was anything but.

The real estate agent should have advertised the house as a two-bedroom with a possibility of a third. At least that is what I would have done. While your agent may have thought he was trying to get people to come see your house, what he was really trying to do was to switch the potential buyer to a true three-bedroom. This is not a violation of ethics, but it surely is questionable if you're the seller.

I do wish you well.

Dick Dennis          dixiedee13@aol.com

Answer
You certainly may, but I doubt if it is going to happen. But if you are adament when you tell them that they are to advertise the property as a two-bedroom with an extra room (to be used as an office, den, bedroom, etc.) and change it also in the MLS information, and they still don't do it, then you have good grounds to cancel it unilaterally.

Just let them try to force you or demand you continue on or to pay their fee because you cancelled unilaterally. That's when you engage a REAL ESTATE attorney to show you mean business.

As long as they do cut it down as a two-bedroom, etc., then I think you should give them the opportunity to perform properly.

You take care.

Dick Dennis