S
smisal
Guest
pennsylvania - i entered an installment sales agreement in 4/96 with a licensed real estate agent. the deal happened as follows: i wanted to buy a house, but did not have the financing at the time. the real estate agent said he had a personal property that he was looking to sell. he wanted to sell so that he could get financing to build a new home. he showed us the house and said he "paid" 89,500 for the house and he was just looking to get his money out of it. he also made many promises about how improvements would be made to the land. the agreement provided me with 2 years to come up with closing cost. in '98 he approached me to close on the house, but again i said that i didn't have closing costs. he said he would give another year or so, but i never signed any extension to the initial agreement. now in 4/00, i decided i did not want to buy the house. he threatened to sue me for the balance on the mortgage (approx. 82K). this sparked further research on my part. i have since discovered that the deed is for 89,500, but his mortgage was for 71,600. he claimed this was his primary residence to his bank, but never lived there a day. the property value on all surrounding spec homes is around 75K. i dont know why he "paid" so much more for his house when all the houses are the same. he also took a second mortgage from the builder himself for 4,000 which would make his purchase price 75,600. but he showed me the deed at the time i signed the initial installment sales agreement for 89500. i think he misrepresented the price, as well as potential fraud with the bank. what recourse do i have for "overpaying" for 4 years based on his misrepresentation? and does this sound ethical for him to do?