previous owner lied about the lottery commision that the store received

[winter32842]

I live in the state of Massachusetts.

Our family have spent all of our life saving to buy a lottery/cigarette store (a very small store) for $50,000 just about 2 weeks ago in downtown Boston. The previous owner said that he made about $110,000 in lottery commission last year, about $96,000 two years ago. Yes, we have written document of it. After we brought it, we are only making $90.00 per day, therefore we will only make about $32,000 per year in lottery commission. The rent is about $3000 per month and therefore, we should make at least $100 per day profit in order to just pay the rent.

We went to the lottery headquarter and found out that the previous owner lied about the lottery commission. He only made about $50,000 in lottery commission and he made $100,000 from the combination of lottery commission, the percentage he got when people won really big and the store itself won a $20,000 lottery (every year the lottery commission draws lotteries from all the store and give money to lucky stores that actually get draw in the lottery).

We want to return the store back to the previous owner and get our money back as soon as possible, so our father, who work at the store right now, can actually work a real job instead of working for free.


Please help, we have spent all of our money on the store and we do not have any more money. Our father is the sole provider of our family (family of 5). I am a full time college student.

 

[justalayman]

about $110,000 in lottery commission last year, about $96,000 two years ago.

and this is compared to $100,000 actual?



First, notice the highlighted word in the first sentence. "About", not "exactly" not "more than" but "about". Now, since about would be a subjective term, maybe he considered it to be about what he stated.

next, you had the obligation of confirming the amount if it was so critical and obviously quite easy to obtain.


Unless the seller guaranteed some specific amount or you stated the exact amount of the lottery commissions was the determining factor, I doubt you have much of a chance to rescind the deal unless, you can prove he intentionally over estimated the lottery commission in order to make the sale.

If so, then hire an attorney and sue the guy for the rescission of the sale. It shouldn't take more than a year or two and costs? anybodies guess but that $50k sounds like a good number.

In other words; it won't be fast and it won't be cheap.

You do the homework before you sign your name.

 

[winter32842]

and this is compared to $100,000 actual?



First, notice the highlighted word in the first sentence. "About", not "exactly" not "more than" but "about". Now, since about would be a subjective term, maybe he considered it to be about what he stated.

next, you had the obligation of confirming the amount if it was so critical and obviously quite easy to obtain.


Unless the seller guaranteed some specific amount or you stated the exact amount of the lottery commissions was the determining factor, I doubt you have much of a chance to rescind the deal unless, you can prove he intentionally over estimated the lottery commission in order to make the sale.

If so, then hire an attorney and sue the guy for the rescission of the sale. It shouldn't take more than a year or two and costs? anybodies guess but that $50k sounds like a good number.

In other words; it won't be fast and it won't be cheap.

You do the homework before you sign your name.

The actual lottery commission the store receieved was around $50.000.

I just said "about" to make it more simpler. He gave us the exact amount, which is $112,865.65.

Yes, our mistake was not asking the lottery commission about it. We did see the tax return and it was correct. Our friends, who also have stores, and our attorney said that tax return was enough. Like I said before, the tax return was misleading (it was the combination of lottery commission, the percentage he got when people won really big and the store itself won a $20,000 lottery) but the owner said it was 100% commission, which is big lie and we have the document to prove it.

Yes, we stated that the lottery commission was the main determining factor for the buying the store since the store is a mainly lottery store (like 90% of the profit come from the lottery).

Instead of sueing, can you take him to a civil court for fraud because it is illegal to give false and misleading information just to sell the store.

 

[justalayman]

suing,, for this, would be in a civil court. The action you would take is to sue them.


as to what you are considering commission: I do not know how the lottery agency terms things but the money earned as a share of the winnings; I would consider commissions since that is what they are. As to the winnings; That is the only thing I would not consider a commision.

Instead of sueing, can you take him to a civil court for fraud because it is illegal to give false and misleading information just to sell the store.

that is what I suggested doing but it is not going to be fast nor cheap.