Consumer Protection Law
Consumer Protection Law Questions? Ask a Lawyer Now.
Hello and thank you for the question.
Are you asking in connection with securing a loan?
If so, does the contract have a mortgage contingency?
Need the context, and then can answer
awaiting your reply
are you there?
No. I was in a one-year lease to own. In April I applied for and was approved for a loan for the asking amount of $240K. As part of the FHA process, I was required to get a home appraisal which came in at $191K. The seller refused to accept the appraisal or negotiate the price or release me from the contract without signing over the $5K deposit. Now I've been told, I should have been released from the contract without penalty because the house did not appraise which was beyond my control. Although I had representation, there was no appraisal contingency in the contract. I was stupid and believed everything I was told :(
If the contract has been signed and does not have the contingency for appraisal, you would not have an automatic right to cancel. Creatively, you may try to negotiate cancellation and return of the deposit, perhaps partially, if the seller misled you in some manner about the value, or the property.
Beyond that it would be a buyer beware situation where a court would not side with the buyer absent a specific breach or fraud
Is the answer is clear?
Therein lies the rub. Although I did not know it at the time, the seller and his agent knew the house was appraised for $155K by the town as did my agent but I was never informed about any of that. I do feel it was deceptive practices.
That can be your claim
the concealment and misrepresentation
especially as against your agent
who owed you a fiduciary duty of care
That's what I thought, but she is no longer practicing real estate.
often the threat of a claim/lawsuit can bring the parties to the table to settle
she would still be liable
and if she worked for an agency
that employer is liable
and you may look to her employer
She did work for an agency and it was the same as the sellers... I learned a hard lesson.
that also creates a conflict of interest
that would appear the best route
I wish you the best of luck
I trust the answer was fast, clear and acceptable
Okay, you have confirmed what I found online. Thank you very much for your help.
and would ask that you click on an excellent rating for it