Expert: liznarr - 7/26/2006

Question
We just signed an offer to purchase last night for a home that we thought was 2,052 SF, fully accepted by the seller too!  I got a call this morning from our agent and was told the listing agent calculated the SF wrong, over by 134 SF.  The house is in a hot neighborhood is just what we want so there is no way we want to back our of our offer.  But I feel the listing agent (who sold it to the current sellers JUST LAST YEAR) should compensate us for HER MISTAKE.  What burns my up is that she called our agent this morning, after just speaking to him last night telling him our offer was accepted.  I feel highly deceived by her actions. The house is a RANCH, so how hard it that to measure!! If she thought the SF was wrong why didn't she mention it yesterday (oh, the ink wasn't dry on our contract yet).  At the now current SF the list price would be almost $18,000 LOWER than what we are going to pay.  I want some compensation from her, but I want an outside opinion on the situation.  

Answer
Hi Jen,

Most MLS listings have language in the printouts somewhere that all information is “deemed reliable but not guaranteed.”  Check yours to see if such language exists.  Also, many have disclaimers if the SF has not yet been verified, or that it can vary +/- ten percent.

If the above or similar language is in the MLS information disseminated, you may not have much recourse.  An additional fact I would point out is since you were represented by an agent, your agent also has a responsibility to verify square footage for you.  Did you make this clear to your agent that the SF is very important to you?

I have heard arguments both ways.  One train of thought is that “IF” the SF difference is not significant (and that could be subject to interpretation and/or opinion), and you have physically inspected the property and made an offer based on a visual, you made your offer based on what you saw, irrespective of a SF difference amounting to less than 10%.

Granted, the listing agent made a mistake, but did the right thing by giving immediate notification to everyone.  Since the listing agent just sold this property to the current owners only last year, she should have been much more attentive to detail.  Have you asked the question HOW this mistake came about?  That answer might give you some direction.

As far as the difference in price the SF would calculate out to, I would ASK that the price be lowered.  You have nothing to lose by doing that.  If the Seller refuses, you can then ask the listing agent via her broker-in-charge to reduce her commission.

If neither of the above works and you wish to pursue it further, you probably should consult a good attorney in your area for legal advice.

Good luck to you, and write again if you have additional questions.

Regards,
Elizabeth Narr