Legal Question in Real Estate Law in Texas

Gross Misrepresentation

In October 2007, I found a wonderful deal on two vacant lots and signed a contract. The lots was advertised on MLS and realtor's web page as two 70x250 sq ft lots. After paying for the survey ($650) it was found that the actual cost of the two lots is $42K. This changed what I thought I was paying from $21K (a good deal) to $42K (well above market value for this area) so we legally terminated the contract. Recently, the one MLS listing has been updated to show two MLS Listing for each lot. I am also not a wealthy person (just starting to build my first home). I have not signed the earnest money release form yet because the form also states that all persons under contract are released from liability. I feel that I have a right to be reimbursed for my expense due to the gross misrepresentation of the two lots. The Broker is refusing to reimburse the survey money. Her argument is that I new what I was signing. Is there anything I can do? Is it worth my time to file with a Small Claims Court?


Asked on 2/09/08, 1:14 pm

1 Answer from Attorneys
Cheryl Rivera Smith The Smith Law Firm

Re: Gross Misrepresentation

I would need to read your contract and look at the advertisement to see if you have recourse. Even if you do, $650 really may not be worth the headache of a lawsuit. However, if consumer misrepresentation is involved, you may be entitled to treble damages.

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Answered on 2/10/08, 9:58 am


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