Arkansas | Real Estate Law
Legal Question
Contract termination due to disclosure
My husband and I signed a contract (pd earnest money) to purchase river front property based upon verbal statements by seller concerning non-flooding of property. These statements were made in front of the real estate agent representing buyer and seller. Four days later, a disclosure statement was faxed to us in which the seller circled FLOOD and stated that river front property had been under water. We called the real estate agent and complained and asked for our earnest money to be returned. Recently, the real estate agent called to let us know that he had sat in on a meeting between the seller and an attorney and the seller had refused to return earnest money, we are to be sued for breach of performance contract and expected to pay for property. How is this possible and what are our rights? Has precendence been set in any such case?
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