A property was listed for $100,000. A broker was showing the property to a buyer who wanted to offer $70,000. The broker told the buyer a shopping center would be built down the street within one year and, therefore, the property was worth $100,000. The buyer then purchased the property for $100,000. Four years later, the shopping center still was not built and the buyer was forced to sell the property for $65,000. Could the buyer recover any losses from anyone?

Question

Jamal

Business

2 October, 14:52

A property was listed for $100,000. A broker was showing the property to a buyer who wanted to offer $70,000. The broker told the buyer a shopping center would be built down the street within one year and, therefore, the property was worth $100,000. The buyer then purchased the property for $100,000. Four years later, the shopping center still was not built and the buyer was forced to sell the property for $65,000. Could the buyer recover any losses from anyone?

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Marc Sellers · Answer 1

In the given case, the buyer has the right to recover any losses from the broker because there is no written agreement or no verbal communication is there which proofs that the shopping center would be built down the street within one year.

Since there is no verbal communication between the buyer and the broker, the buyer has the right to recover any lost amount from the broker.

Due to not following the proper channel of communication, this condition happened.

Thus, It is the case of misrepresentation.