New home lot area is less than what was shown at the time of selling

UPDATED: Oct 1, 2022

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New home lot area is less than what was shown at the time of selling

A couple of months back we have purchased a home from a publicly listed builder possession is due in June 2019. When we signed the documents and paid the non-refundable deposit, we were told the lot size is 7500 sq. ft. When I asked for the dimensions and layout soon after signing the documents, they provided me with dimensions that add up to around 6600 sq ft only I asked them to clarify and after a couple of followups they sent me an updated one which adds up to 7500 sq.ft as promised at the time of signing the contract. Fast forward 2 months. I receive an email with a copy of city approved layout from the seller. New Link Destination
my surprise again the dimensions add up to only about 6600 sq.ft. When I reached out to the seller, after another 2 weeks they confirmed that the actual lot size is 6686 sq. ft only and if I do not wish to proceed they will refund my deposit I feel that I have been cheated by giving incorrect information twice over I am not sure if I can trust the seller again and proceed with closing the house. I would like to know if I can take any legal action against the seller and, if so, do I stand any chance of monetary compensation not just for the time and effort we have wasted but also on the fact that this decision had a few other cascading effects on other financial decisions we made over the past 2 months there after. I would also like to understand what other options do I have.

Asked on January 4, 2019 under Real Estate Law, Arizona


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

You don't have any recourse beyond what they are voluntarily offering you: a refund of your deposit. The law does not provide compensation for the waste of your time or for your effort, or for the cascading effects on your finances since those are not sufficiently reasonably foreseeable or predictable in advance by the average person (there is only liability for "foreseeable" consequences, which basically mean consequences that would befall any person, not ones based on your own unique life and financial circumstances). So if they will allow you to get your deposit back--to recover the money you put down in reliance on their misrepresentation--they are offering you the compensation you could get if you took legal action. Your only real options are to either take the offer or else continue with them (possibly, if you can, negotiating some price break or discount for the reduction in sq. feet).

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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