The article below featuring a lawsuit in Oklahoma will tell you exactly why!!
Although many buyers like to rely on square footage to compare potential homes and prices; we find as Realtors that we put ourselves in tremendous risk when doing so. Any possibly inaccurate information we provide online about a property can put us as well as our brokers in the position to be sued.
I find myself conflicted on topics like this. We as Realtors must abide by a strict Code of Ethics. If square footage is included in the MLS from a deemed reliable source, like in this case where it was obtained from the local tax assessor, then the buyer and sellers best interest were at hand. With any home purchase or sale it is the buyer's responsibility to complete their due diligence and make sure they are working with a Realtor that is doing the same for them.
Any thoughts from you folks out there?
We would love to hear from you.
ARTICLE:
Lawsuit over Square Footage Proceeds
Oklahoma’s highest court has considered whether to affirm judgment in favor of a real estate broker and seller in a dispute over a home’s square footage.
Michael Presley (“Seller”) listed his home for sale with his mother, Linda Presley (“Salesperson”) of Century 21 Bob Crothers Realty (“Brokerage”). Richard and Dana Bowman (“Buyers”) made an offer to purchase the home, and the parties agreed upon a $145,000 purchase price. The Brokerage listed the property’s size as 2890 square feet in the MLS. The Brokerage stated that it had obtained this information from the local tax assessor’s office. The Buyers claimed their purchase was motivated by their desire to acquire a larger home and they had based their offer for the property was based on the property’s listed square footage.
Following the closing, the Buyers received an appraisal report listing the property’s actual size as 2187 square feet. The Buyers later obtained an earlier appraisal made at the time Seller purchased the property also listing the square footage as 2187. The Buyers filed a lawsuit against the Salesperson, Brokerage, and the Seller for fraud, breach of contract, and also alleged violations of the state’s license laws against the Broker and the Salesperson. The lower courts ruled in favor of the Salesperson, Brokerage, and the Seller, and the Buyers appealed.
The Supreme Court of the State of Oklahoma reversed the lower courts and ruled that there were issues of fact that needed to resolved by a jury. The lower courts had found that the Buyers could not claim fraud because the inaccurate square footage information had not harmed them, as the appraisal had also valued the property at more than $145,000 and so the Buyers did not have any damages. .
Next, the court considered whether the Brokerage and the Salesperson had violated the Oklahoma license laws by misrepresenting the size of the home. The Brokerage and the Salesperson argued that they had relied on the information provided by the county assessor’s office and also there was a disclaimer in the MLS stating that “this information is deemed reliable, but not guaranteed”. The court found that the state’s license laws prevented “substantial misrepresentations” and required licensees to “exercise reasonable skill” in performance of duties. Committing fraud while performing brokerage duties would constitute a breach of the state’s license laws.
The court sent the case back to the trial court for further proceedings.
Bowman v. Presley, 212 P.3d 1210 (Okla. 2009).
Team DealsInNJ
Cheryl Daigle & Daniel Mauz
Keller Williams Realty
856-321-1212
