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misrepresentation

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R

Rose B Cain

Guest
In April of 1999 my mother and I as business partners signed an Agreement and Contract for Deed for the purchase of a restaurant building. Prior to signing the contract one of the corporate owners, myself and my mother did a walk through on the property. We asked if the heaters & air conditioners were in working order and was told yes, while walking through the dining area we noticed a stain on the floor and looked up at the ceiling to see if the roofed had been leaking, the ceiling has no stains looked brand new, we asked if the roof leak and was told they had spent $75,000.00 repairing and fixing up the building that there were no leaks, all you had to do was unlock the doors and open for business. We purchased our new cooking equipment did some remodel and repairs and opened for business June 1999. First time it
rained real good the dining room was leaking in the very spot we had asked about. When we went to remove the wet ceiling tile (suspended ceiling) we observed several stain tiles lying in the ceiling. Come November when the weather called for heat to our surprise we couldn't keep the building warm. We went on top the building where the 4 heating @ air conditioning units are located we found only 1 unit was working 2 units were completely striped of any working
parts and the other unit in tact but not working. We hired a company to give us a bid to fix the units and was told they could not be fixed they were to old and had to be replaced at a price of $20,000.00. After further checking we found out the people who sold the business to the people we purchased
it from had filled out a disclosure statement and had disclosed that the units were not working. We now have over $140,000.00 into this business and and can not afford to replace the heaters. After telling the seller about the heaters they chose to do nothing. We closed the restaurant down for 4 months and tried to make the payments in which we fell behind in. We opened again
in April of 2000 trying to catch up on the payments. As of Sept 2000 we were 4 payments behind and they foreclosed. We have a taped telephone conversation asking him why he told us the units were in working order and did nothing when he was informed they did not work. He said his business partner told him
they worked but at that time he was living in Arizona - so to the best of his knowledge they worked. This is a very simple detail of our problem, our question to you is do we have any recourse in this matter to get our $140,000.00 investment back based on the fact that the contract was in part a result of
active and knowing misrepresentations made by the seller.
 


HomeGuru

Senior Member
<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by Rose B Cain:
In April of 1999 my mother and I as business partners signed an Agreement and Contract for Deed for the purchase of a restaurant building. Prior to signing the contract one of the corporate owners, myself and my mother did a walk through on the property. We asked if the heaters & air conditioners were in working order and was told yes, while walking through the dining area we noticed a stain on the floor and looked up at the ceiling to see if the roofed had been leaking, the ceiling has no stains looked brand new, we asked if the roof leak and was told they had spent $75,000.00 repairing and fixing up the building that there were no leaks, all you had to do was unlock the doors and open for business. We purchased our new cooking equipment did some remodel and repairs and opened for business June 1999. First time it
rained real good the dining room was leaking in the very spot we had asked about. When we went to remove the wet ceiling tile (suspended ceiling) we observed several stain tiles lying in the ceiling. Come November when the weather called for heat to our surprise we couldn't keep the building warm. We went on top the building where the 4 heating @ air conditioning units are located we found only 1 unit was working 2 units were completely striped of any working
parts and the other unit in tact but not working. We hired a company to give us a bid to fix the units and was told they could not be fixed they were to old and had to be replaced at a price of $20,000.00. After further checking we found out the people who sold the business to the people we purchased
it from had filled out a disclosure statement and had disclosed that the units were not working. We now have over $140,000.00 into this business and and can not afford to replace the heaters. After telling the seller about the heaters they chose to do nothing. We closed the restaurant down for 4 months and tried to make the payments in which we fell behind in. We opened again
in April of 2000 trying to catch up on the payments. As of Sept 2000 we were 4 payments behind and they foreclosed. We have a taped telephone conversation asking him why he told us the units were in working order and did nothing when he was informed they did not work. He said his business partner told him
they worked but at that time he was living in Arizona - so to the best of his knowledge they worked. This is a very simple detail of our problem, our question to you is do we have any recourse in this matter to get our $140,000.00 investment back based on the fact that the contract was in part a result of
active and knowing misrepresentations made by the seller.
<HR></BLOCKQUOTE>

If that was a simple detail, I do not want to read the complex version. I am not sure if you can get your money back but you can sue for misrepresentation.
 

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