| Copyright 2005-2007 All Rights Reserved Charles E. Marunde & FreeRealEstateLaw.com |
| Seller Misrepresentation |
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Seller misrepresentation is a fairly common issue litigated in Washington.
It usually involves a claim by a buyer after closing that the seller
misrepresented something major (material) about the house or property.
The claims drafted by the Buyer's attorney normally ask for everything
and the kitchen sink, including damages, attorney's fees, and the ultimate
remedy for a Buyer, rescission. Rescission is an extraordinary remedy,
which would undo the transaction as though it never happened. The
Buyer would get all his money back and the Seller would get the property
back, and the Buyer might also get his attorney's fees, too.
The Seller's Disclosure Statement was the legislature's attempt to stop or
reduce seller misrepresentation. Of course, it does not. An examination
of the Seller's Disclosure Statement will tell you that all a Seller has to do
to avoid getting hung by his own words is to simply check "I don't know" on
the form for every answer. It is almost impossible to prove that he knew
something.
One in a while, there will be proof of misrepresentation, as in this actual
case: Misrepresentation Complaint. This was a winning case.
In other cases, there may never have been any misrepresentation at all,
but the Buyer can use the labyrinthian nuances of the justice system at
the hands of a ruthless attorney to extort money out of the seller even
after closing.
In some cases, the proof is too complicated to persuade a judge, as in this
case, which was very involved. See the actual Trial Brief. This trial brief
also lays out the legal arguments and case law nicely so you can see what
the arguments are in such cases.
It usually involves a claim by a buyer after closing that the seller
misrepresented something major (material) about the house or property.
The claims drafted by the Buyer's attorney normally ask for everything
and the kitchen sink, including damages, attorney's fees, and the ultimate
remedy for a Buyer, rescission. Rescission is an extraordinary remedy,
which would undo the transaction as though it never happened. The
Buyer would get all his money back and the Seller would get the property
back, and the Buyer might also get his attorney's fees, too.
The Seller's Disclosure Statement was the legislature's attempt to stop or
reduce seller misrepresentation. Of course, it does not. An examination
of the Seller's Disclosure Statement will tell you that all a Seller has to do
to avoid getting hung by his own words is to simply check "I don't know" on
the form for every answer. It is almost impossible to prove that he knew
something.
One in a while, there will be proof of misrepresentation, as in this actual
case: Misrepresentation Complaint. This was a winning case.
In other cases, there may never have been any misrepresentation at all,
but the Buyer can use the labyrinthian nuances of the justice system at
the hands of a ruthless attorney to extort money out of the seller even
after closing.
In some cases, the proof is too complicated to persuade a judge, as in this
case, which was very involved. See the actual Trial Brief. This trial brief
also lays out the legal arguments and case law nicely so you can see what
the arguments are in such cases.
A misrepresentation
lawsuit is almost always
accompanied by claims of
fraud. These kinds of
lawsuits get very ugly, and
it is typical to see
attorney's fees for each of
the parties ranging from
$24,000 to $70,000 or
more.
lawsuit is almost always
accompanied by claims of
fraud. These kinds of
lawsuits get very ugly, and
it is typical to see
attorney's fees for each of
the parties ranging from
$24,000 to $70,000 or
more.
| Because of the threat of lawsuits, especially lawsuits that have no true basis in fact, and the extraordinary costs of litigation, it is critical that the written agreements, addendums and closing documents protect a Seller from false claims of misrepresentation and fraud. |
| Chuck Marunde, who is an Real Estate Broker and Retired Real Estate Attorney, can be contacted at 360-775-5424 or by email. |