Bait & Switch

One of my associates is involved in a transaction where the sq. footage was reported (advertised) to be 12% more than it actually is.  The unit being purchased is a cute little one bedroom condo rehab close to downtown Denver. The building has 15 units, 7 are currently sold.

Last week the listing agent sends over a disclosure for the buyer to sign, basically saying the builder is  not responsible for anything. It says the sq. footage stated was merely used for "marketing purposes" and the buyer should measure personally to confirm.

Exculpatory disclosures are frowned upon in Colorado.  Brokers used to use them to excuse themselves for doing all sorts of things.  Every time a consumer would get mad about something that didn't happen, but should have that scenario would be covered in a "broker disclosure."  Brokerage disclosures became full one or two page documents.  Finally the legislature banished them. 

OK, so why is a builder allowed to use such a document?

To make matters worse the appraisal (which validated the lessor sq. foot amount) is looking rather suspect.  Values were reached, but the method used to reach them is not adding up.

This old nose smells a fish.  A big fat stinky fish.

Builders, developers, rehabers whatever you want to call them should be held to the same standards we are all held too.  Representation to the public should not be exempt from the truth. 

So now what should the buyer do?  Or rather now that the owner/buyer/agent knows a mistake has been made, what should they do?

In my opinion an adjustment is in order. The unit is less than represented, so should the price.  If they can's see fit to making the proper adjustment, the buyer should be compensated for their time and trouble.

• buyers don't sign away your rights
• sign only State Approved forms
• read the contract
• be ready to walk away
• report bad actors like this to the Real Estate Commission
• hire an attorney ~ bad actors shouldn't be allowed to BULLY people

Bait & Switch is a bad way to do business.