Square Footage Wrong From Tax Records - Broker Liable
Friday November 21, 2008
Anybody out there from Texas who wants to help us with some information? Realtor.org just posted this article about an appeals court ruling upholding broker liability for wrong square footage, even though it came from tax records.Not that it mattered in this case, but I wonder if there is a disclaimer in the MLS, as well as in the purchase agreement that instructs the buyer to verify square footage on their own. There is such a clause in our New Mexico purchase agreements. I've long considered it useless, and this Texas situation could bear that out if they have the same disclaimer. It would seem that there probably wasn't an appraisal either, or they would have had a square footage number before closing.
Quoting the article: "The appeals court said the real estate professionals had a duty to get the information right and the buyers shouldn't have to pull out a tape measure."
Comments
In Idaho the Real Estate Purchase and Sales Agreement paragraph 12 discloses sq. footage verification: “SQUARE FOOTAGE VERIFICATION:
BUYER IS AWARE THAT ANY REFERENCE TO THE SQUARE FOOTAGE OF THE REAL PROPERTY OR IMPROVEMENTS IS APPROXIMATE. IF SQUARE FOOTAGE IS MATERIAL TO THE BUYER, IT MUST BE VERIFIED DURING THE INSPECTION PERIOD.”
In my area of Texas our MLS has a disclaimer in reference to all information inputed into the MLS. We state in the MLS Profile worksheet as to were we obtained the information from i.e builder’s plan, tax records, appraisal records. We know the Tax districts sq.ft. can be way off the mark by over 50 sq.ft. plus. The appraiser’s can be off the hook as well on their Sq.Ft. estimate.
In Arizona - our AAR Form RPC states in Paragraph 6b line 195 the following:
Square Footage:BUYER IS AWARE THAT ANY REFERENCE TO THE SQUARE FOOTAGE OF THE PREMISES, BOTH THE REAL PROPERTY (LAND) AND IMPROVEMENTS THEREON, IS APPROXIMATE. IF SQUARE FOOTAGE IS A MATERIAL MATTER TO THE BUYER, IT MUST BE INVESTIGATED DURING THE INSPECTION PERIOD.
It’s pretty clear here for our buyers here in AZ, square footage many times is not accurate in the tax records and in no way should the broker be liable, it’s part of the due diligence of the buyer. I would be surprised to find out why that or something similar is not in the Texas Residental Purchase Contract…Curious in AZ.
Arizona Residential Real Estate Purchase Contract
Thanks to all for your comments. I think Texas does have some kind of disclaimer about the square footage, but judges do what judges do.
It would be interesting to get more detail on this specific case though.
Jim
In areas that subscribe to the Law of Agency
it places the duty of due diligence upon both the agents of the seller and buyer and the courts will disregard any disclaimer with respect to the agents fiduciary duty.