Can I file suit to be releasedfrom the mortgage by the developer/builder/realtor if material misrepresentations were made?

UPDATED: Aug 9, 2011

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Can I file suit to be releasedfrom the mortgage by the developer/builder/realtor if material misrepresentations were made?

I purchased a home from a builder who represents himself as the realtor of the properties. I purchased with the understanding there were amenities (pool, playground, basketball court), a homeowners association with fees of $300/year, and restrictions/covenants for the neighborhood to abide by. After doing a title search, we have realized that none of the lots in the community were encumbered and are not obligated to the HOA fees/restrictions, etc. The developer represented the community with all these things, even paid my first year HOA fees, only to find out that it isn’t legal.

Asked on August 9, 2011 South Carolina


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

Whether or not the misreprensentations that induced you to purchase the home that you did amount to be so significant to warrant your rescission (cancellation) of the property needs further research to be given an opinion as to your request.

The laws in many states in this country concerning property damages for new construction resulting from physical defects or misrepresentations as to the unit purchased is the "difference between what you received and what you paid" or "the difference between what you received and what you expected to receive".

To start your analysis as to damages, you need to first start with your baseline purchase price. You then need to retain a licensed appraiser to establish whether or not your purchase price exceeded the fair market value of the property acquired in its condition with the amenities as represented as if in place and the amenities as represented as not in place.

The appraiser will then establish valuation numbers to determine the degree of differential if any between the purchase price you paid and what you expected to receive with respect to the represented amenities.

You should consult with an experienced real estate attorney concerning your situation.

Good luck.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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