Misrepresentation

What is the name of your state? CA

We purchased from a city building code enforcer r-1 zoned property that was represented as 'grandfathered in' as a Triplex by the Seller and the Seller's Real Estate Agent. All flyers advertising the property state Triplex. We have since discovered that the city does not recognize it as a Triplex even thought the Tax Assessors Office shows it as a Triplex. The deed was recorded the end of April. The beginning of June is when we discovered that it is not a Triplex in the city's eyes. We would never have purchased this property as a single family dwelling for the price that we paid as a Triplex. We made it clear that we were purchasing this property as an income investment property. We understand that we have 2 options - we can rescind the sale or we can settle for an amount to make the difference up for a single family dwelling price as compared to a multi dwelling price. If the Seller has no funds and cannot qualify for a second mortgage to buy the property back or even to qualify for a loan to settle the difference, are we just out of luck? Does the Seller's Realtor have any obligation toward making this right? Don't they carry insurance for such things? If we choose to rescind, can we rent the property as a single family dwelling to help with this mortgage payment?

[HomeGuru]

Originally Posted by the3ds

What is the name of your state? CA

We purchased from a city building code enforcer r-1 zoned property that was represented as 'grandfathered in' as a Triplex by the Seller and the Seller's Real Estate Agent. All flyers advertising the property state Triplex. We have since discovered that the city does not recognize it as a Triplex even thought the Tax Assessors Office shows it as a Triplex. The deed was recorded the end of April. The beginning of June is when we discovered that it is not a Triplex in the city's eyes. We would never have purchased this property as a single family dwelling for the price that we paid as a Triplex. We made it clear that we were purchasing this property as an income investment property. We understand that we have 2 options - we can rescind the sale or we can settle for an amount to make the difference up for a single family dwelling price as compared to a multi dwelling price.

**A: you have another option of doing nothing since you did not complete due diligence and obtain a letter from the City confirming the property as a triplex prior to closing.
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If the Seller has no funds and cannot qualify for a second mortgage to buy the property back or even to qualify for a loan to settle the difference, are we just out of luck?

**A: why would the Seller qualify for a second mortgage? Aren't you the owner now? The Seller does not own the property to secure a second mortgage on.
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Does the Seller's Realtor have any obligation toward making this right?

**A: possibly, depending upon what was said, advertised and disclosed. But where is your Realtor?
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Don't they carry insurance for such things?

**A: some carry errors and omissions insurance.
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If we choose to rescind, can we rent the property as a single family dwelling to help with this mortgage payment?

**A: confusing question.