square footage discrepancy

What is the name of your state? TN

I have put an offer on a house that was accepted and closing is within 2 weeks. I had my agent write in "Square footage to be confirmed" as a condition on the contract. The listing agent verbally told my agent that the square footage was correct. But the appraisal by my bank showed 165 sq. feet less than the advertised square footage. The listing agent then reveals an appraisal that the seller had done a few years prior showing 105 sq. feet less than advertised. I feel the seller/listing agent had access to more accurate information but elected to list it as having more square footage than actual. So I am now being told by my agent that I am obligated to purchase and can be sued by the seller and loose my earnest money if I elect not to buy, despite my forethought to include square footage as a condition in the contract. My agent says that square footage is approximate and this is why it will not stand up in court.

I am still interested in the house, but at a discounted price. But I have no bargaining power if I cannot terminate contract.

I am interested in anyones thoughts about whether I can terminate the contract and what is considered approximate square footage. Thanks.

[HomeGuru]

[quote]Originally posted by dcd
[b]What is the name of your state? TN

I have put an offer on a house that was accepted and closing is within 2 weeks. I had my agent write in "Square footage to be confirmed" as a condition on the contract.

**A: such a condition is basically useless because it is not specific and does not give the Buyer the exclusive right to terminate the contract. The clause does not state SF confirmed by whom. It could be the Seller's high school kid. And if someone confirmed the SF, the condition would be satisfied. The contingency clause should have read something to the effect of, : the SF of the house to be confirmed by Buyer's lender's real estate appraiser. Should the SF differ from the SF listed on the MLS listing profile sheet, fact sheet and verbal confirmation of _____SF by the listing agent, BUyer has a right to accept the property or terminate the transaction." Another way to calculate the sales price is to base the price at a dollar amount per SF, thus the SF is smaller or larger, the price is changed accordingly to reflect the actual SF.
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The listing agent verbally told my agent that the square footage was correct. But the appraisal by my bank showed 165 sq. feet less than the advertised square footage.

**A: Verbals mean nothing in real estate. Always get things in writing.
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The listing agent then reveals an appraisal that the seller had done a few years prior showing 105 sq. feet less than advertised. I feel the seller/listing agent had access to more accurate information but elected to list it as having more square footage than actual.

**A: agent is guilty of misrepresentation and failure to conform to the standard of care.
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So I am now being told by my agent that I am obligated to purchase and can be sued by the seller and loose my earnest money if I elect not to buy, despite my forethought to include square footage as a condition in the contract. My agent says that square footage is approximate and this is why it will not stand up in court.

**A: although true, you agent is far from an attorney and should not be giving you legal advice.
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I am still interested in the house, but at a discounted price. But I have no bargaining power if I cannot terminate contract.

I am interested in anyones thoughts about whether I can terminate the contract and what is considered approximate square footage. Thanks.

**A" do not rely on your agent or anyone else to give you advice on the matter. Seek legal counsel.

HomeGuru,

Thanks for the timely reply. I spoke to a real estate attorney by phone today, and he also said that my square footage condition was basically useless. I will probably go ahead and purchase the house and consider this as a lesson learned from my first home buying experience.

[HomeGuru]

Originally posted by dcd
HomeGuru,

Thanks for the timely reply. I spoke to a real estate attorney by phone today, and he also said that my square footage condition was basically useless. I will probably go ahead and purchase the house and consider this as a lesson learned from my first home buying experience.

**A: thanks for the update and good luck.