Expert: Dick Dennis - 11/20/2006

Question
Hi,

A situation for a friend of mine - When he bought the house (new
construction) the house was mentioned as 2800sft. But, after closing, from
city records and it is listed as 2600sft. Also, the appraisal report
shows it as 2670sft. So, what options does the buyer has now (after
closing). Can he go against the builder ?

Thanks in advance for your advice,


Answer
First, your friend should check the original sales representation that it doesn't say, "2800 sq ft M/L (more or less)." That could be an excuse for the builder. The difference is 130 sq ft, which is 1.43% of the purchase price. On a $250,000 purchase price that would be equal to $3,575. In that case, a REAL ESTATE attorney would suggest your friend take the matter to small claims court. If the matter is equal to more than $7,500 in most small claims jurisdictions, then it would be taken to an attorney. Negotiating with the builder might give your friend monthly payments equal to the shortage. However, he should accept only principal payments. There's different ways to negotiate that shortage.

I do wish you well.

Dick Dennis           dixiedee13@aol.com