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Barrister
Barrister, Attorney
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if a realestate sales agent makes a verbal statement to a

Resolved Question:

if a realestate sales agent makes a verbal statement to a purchaser and the paurchaser finds the statement to be untrue after two years does the purchaser have grounds to sue in court ?
Submitted: 4 years ago.
Category: Legal
Expert:  Barrister replied 4 years ago.

Hello,

 

Unfortunately if the statement was not also a written statement, then it would be unenforceable as anything to do with a property purchase has to be in writing to be binding. This is under the "four corners doctrine" which states that that entire contract and all terms are contained within the "four corners" of the document. There is also a doctrine called the "statute of frauds" which also states that any contract regarding the sale of property must be in writing to be enforceable.

.

I know this is not the news you had hoped for.

.

.

thanks

Lawpro

 

 

Barrister, Attorney
Category: Legal
Satisfied Customers: 24592
Experience: 14 yrs practice, Civil, Criminal, Domestic, Realtor, Landlord 24+ yrs
Barrister and 7 other Legal Specialists are ready to help you
Customer: replied 4 years ago.

I would like to clarify that I was the developer, not the purchaser. I have since sold the development and am in the process of canceling the Contract for Deed due to the fact that the purchaser has been in default for two years.

 

Thank you for your response

 

 

 

Expert:  Barrister replied 4 years ago.

Ok, as long as the statement wasn't in writing, the purchaser would have to provide evidence of fraud or misrepresentation to have a chance at winning any suit. But if the realtor denys making any false promises and instead only engaged in "puffery" (talking up a sale), then I don't see any cause of action that would succeed. Assuming that the realtor denied making the statement, it would be a he said/she said argument unless there were uninterested witnesses (non family) who could confirm that the statement was made.

 

But even if the realtor did admit making the statement, unless you told them to actively misrepresent the property, the purchaser's action would lie against the realtor for fraud and misrepresentation, not you. Even if the realtor said something like the entire development will be done in 6 months and that turned out not to be true due to market conditions, that is not misrepresentation if the realtor had every reason to believe in the truth of the statement at the time it was made. The realtor has a fiduciary duty to you as your agent if they were representing you as the seller to not do anything against your interests and if they actively lied to a purchaser, that would be a breach of their duty to you and the purchaser and either of you could hold them liable for any damages.

.

That doesn't mean that they can't sue and have you have to defend as anyone can sue anybody for just about anything. It just means that they likely won't win.

.

.

.thanks

Lawpro

 

 

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Barrister
Barrister
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