HK millionaire sues Coldwell banker dual-agent for misleading square footage

Why are you surprised?  The buyer had plenty of opportunity to check the size and I am guessing they used the standard CAR forms which basically yell to the buyer that they are responsible for checking everything.

Also, sq ft seems to vary widely depending on who is measuring.  Obviously this particular case of a 50% delta seems odd but even newer houses in Irvine have varying numbers.  Look at our house in Woodbury.  The builder has our floor plan as 3700 but our particular house as 3850, the assessor has it as 3450 as they dont seem to count the casita, and between the purchase and multiple refis, appraisers seem to peg us at 3700-4000. 
 
Horiike, who signed an advisory saying the broker was not responsible for verifying square footage, bought the property without further investigating its size, according to court records.

Game, set, and match.
 
BTB, we just closed on a small fixer.  The listing agent estimation was 40% higher than the recorded and 30% over our measured.  That seems like a huge discrepancy to me but I also know that most people including agents aren't able to access sq ft well.  Heck 2500 sq vaulted ceiling homes in Tustin Ranch feel a lot bigger than Irvine 3500 sq ft houses. 

As Kings noted, the agent advised the buyer to do inspections through the standard CAR forms and the buyer didn't.  His bad. 
 
While the buyer may not have a legal case due to signing away his rights, I would expect that the professional association censure the listing agent for misrepresenting the property. Did that happen in this case? Thousands of missing sq ft...
 
HMart said:
While the buyer may not have a legal case due to signing away his rights, I would expect that the professional association censure the listing agent for misrepresenting the property. Did that happen in this case? Thousands of missing sq ft...

As an agent in any kind of sale, you're typically using the best available information that you have.  It's not the agent's job to measure the square footage or count the number of screws.  The buyer dropped the ball during their due diligence period by 1) not checking permits to ensure all additions to the property were properly added, 2) not getting an appraisal, and 3) not reviewing any as-built plans.
 
It looks like the agent didnt put any sq ft in the MLS and the 15K sq ft was on a marketing flyer.  Not clear on who created that flyer and how they got the 15K number from. 
 
Burn That Belly said:
rkp said:
It looks like the agent didnt put any sq ft in the MLS and the 15K sq ft was on a marketing flyer.  Not clear on who created that flyer and how they got the 15K number from.

Wouldn't the flyer constitute misrepresentation then? bait n switch.

There's usually a disclaimer on fliers or marketing material for properties/assets like this that says something along the lines of, "interested parties should at their own cost conduct their own analysis and other verification of the data set forth in this document and such other research and inquiries as they deem appropriate."
 
The buyer should have read what he signed and should have done his own due diligence.  At same time, this agent should lose his license just for the bolded statement alone.
https://therealdeal.com/la/2018/04/...zo-testifies-in-dual-agency-transaction-case/

Cortazzo, who testified on March 28, said he verbally disclosed any square footage discrepancies to Horiike during property tours, according a court transcript obtained by TRD. The plaintiff?s lawyer pressed Cortazzo on why he advertised the square footage as ?15,000 square feet of living areas? on a property brochure when public records list the property at 11,050 square feet with 9,434 square feet of living area.

?I?m still confused as to what living area means,? Cortazzo replied. ?I think there are so many different ways to discuss living area, so I don?t [know.]?

Cortazzo also acknowledged listing a different square footage than the one found on public records roughly for about 10 percent of the ?thousands of listings? he said he?s had in his 23-year career, according to the transcript. When plaintiff inquired if he had sold all of these listings, Cortazzo quipped, ?don?t underestimate me.?
 
rkp said:
The buyer should have read what he signed and should have done his own due diligence.  At same time, this agent should lose his license just for the bolded statement alone.
https://therealdeal.com/la/2018/04/...zo-testifies-in-dual-agency-transaction-case/

Cortazzo, who testified on March 28, said he verbally disclosed any square footage discrepancies to Horiike during property tours, according a court transcript obtained by TRD. The plaintiff?s lawyer pressed Cortazzo on why he advertised the square footage as ?15,000 square feet of living areas? on a property brochure when public records list the property at 11,050 square feet with 9,434 square feet of living area.

?I?m still confused as to what living area means,? Cortazzo replied. ?I think there are so many different ways to discuss living area, so I don?t [know.]?

Cortazzo also acknowledged listing a different square footage than the one found on public records roughly for about 10 percent of the ?thousands of listings? he said he?s had in his 23-year career, according to the transcript. When plaintiff inquired if he had sold all of these listings, Cortazzo quipped, ?don?t underestimate me.?

That's legalspeak for not incriminating yourself.
 
Kings said:
rkp said:
The buyer should have read what he signed and should have done his own due diligence.  At same time, this agent should lose his license just for the bolded statement alone.
https://therealdeal.com/la/2018/04/...zo-testifies-in-dual-agency-transaction-case/

Cortazzo, who testified on March 28, said he verbally disclosed any square footage discrepancies to Horiike during property tours, according a court transcript obtained by TRD. The plaintiff?s lawyer pressed Cortazzo on why he advertised the square footage as ?15,000 square feet of living areas? on a property brochure when public records list the property at 11,050 square feet with 9,434 square feet of living area.

?I?m still confused as to what living area means,? Cortazzo replied. ?I think there are so many different ways to discuss living area, so I don?t [know.]?

Cortazzo also acknowledged listing a different square footage than the one found on public records roughly for about 10 percent of the ?thousands of listings? he said he?s had in his 23-year career, according to the transcript. When plaintiff inquired if he had sold all of these listings, Cortazzo quipped, ?don?t underestimate me.?

That's legalspeak for not incriminating yourself.

Your honor I'm just a caveman... I don't know what these fancy terms like "living space" mean.  When I got my realtor's license in the Pliocene era, our living space was the entire outdoors.

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Kings said:
HMart said:
While the buyer may not have a legal case due to signing away his rights, I would expect that the professional association censure the listing agent for misrepresenting the property. Did that happen in this case? Thousands of missing sq ft...

As an agent in any kind of sale, you're typically using the best available information that you have.  It's not the agent's job to measure the square footage or count the number of screws.  The buyer dropped the ball during their due diligence period by 1) not checking permits to ensure all additions to the property were properly added, 2) not getting an appraisal, and 3) not reviewing any as-built plans.

As someone employing a buyer's agent for $250k, I would expect them to check the permits, arrange an inspection, arrange an appraisal.
 
freedomcm said:
Kings said:
HMart said:
While the buyer may not have a legal case due to signing away his rights, I would expect that the professional association censure the listing agent for misrepresenting the property. Did that happen in this case? Thousands of missing sq ft...

As an agent in any kind of sale, you're typically using the best available information that you have.  It's not the agent's job to measure the square footage or count the number of screws.  The buyer dropped the ball during their due diligence period by 1) not checking permits to ensure all additions to the property were properly added, 2) not getting an appraisal, and 3) not reviewing any as-built plans.

As someone employing a buyer's agent for $250k, I would expect them to check the permits, arrange an inspection, arrange an appraisal.

The agent can certainly do these things if you instruct them to.  They're not going to pay for them, though.  Inspection and appraisal cost money, which the buyer would be paying for (and clearly did not in this case).  This buyer rushed into the deal and now is paying for their mistake.
 
I think we listed our 2475sft home as 2500sft... will I get sued? :)

This is an old story but if the buyer can't see a 5000sft difference himself, he needs to get an optometrist not a lawyer.
 
irvinehomeowner said:
This is an old story but if the buyer can't see a 5000sft difference himself, he needs to get an optometrist not a lawyer.
The point is - if the agent can't see a 5000sft difference himself then he is a fraud and the jury should have found him as such or any Realtor License Board should revoke his license
 
irvinehomeowner said:
I think we listed our 2475sft home as 2500sft... will I get sued? :)

This is an old story but if the buyer can't see a 5000sft difference himself, he needs to get an optometrist not a lawyer.

It sounds like the buyer never saw it in person.  Also, if you have been to houses in the 10K sq ft range, it is very very hard to tell whether its 10K, 15K, or 20K. 
 
If you are paying that much for a house and you haven't seen it in person... then you need a psychiatrist instead of an optometrist. :)
 
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