By Alistair Edwards. Mr. Edwards is an attorney with
National Legal Research Group, the nation's oldest and largest legal research
firm for attorneys.
Source: The Lawletter Often, one of the most important decisions that go into buying a house
is its exact location or address. Location can set the price of a home
and determine where the homeowners' children go to school. Home buyers
will often rely on the real estate agent for this information.
In Vagias v. Woodmont Properties, Inc., 2006 WL 709019 (N.J. Super.
Ct. App. Div. 2006), a a New Jersey court held that a real estate agent
could be liable (under the state's Consumer Fraud Act) if he/she misrepresents
the location of a home to a prospective buyer. In that case, the agent
assured the buyers that the home was located in a prestigious part
of town where, in fact, the home was actually located just over the
border in what was considered a less prestigious area. As a result,
the sale value of the home was lower than expected, and buyers' son
was unable to attend a highly rated public elementary school in the
other part of town. In reaching its decision, the court indicated that
this assurance by the agent as to location was not mere puffery and
it dealt with a serious enough issue, with serious consequences, so
as to implicate the consumer statute. The court commented: "Here,
Dingle's statements "were not idle comments or mere puffery." Ibid.
She knew that location in the Montville section of the Township was
very important to plaintiffs. She had been working with them for months
to help them find a house to buy, and she was trying to convince them
that they had finally found the right house and that they should buy
it because of its Montville location. We also disagree with the trial
judge concerning the seriousness of the matter. Viewed in the light
most favorable to plaintiffs, their proofs establish that they suffered
injury well beyond an affront to their social status. They were unable
to send their son to the school they had chosen, and the house they
bought was worth less because it was located in Towaco instead of in
Montville..."
Given the importance of location in the purchasing decision, buyers
are entitled to expect that the realtors who are assisting them in
their housing search will know where the houses are actually located.
A realtor's misrepresentation on that critical issue is a serious matter
and violates the Act. N.J.S.A. 56:8-2
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