Do I have a right to have my depositrefunded if the seller never disclosed the fact that the property is commercial?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Do I have a right to have my depositrefunded if the seller never disclosed the fact that the property is commercial?
I was in the process of purchasing a REO single family residence. I placed a $1500 deposit on the property. After 30 days, I signed a extension form for an additional 15 days forfeiting my deposit. Then my lender said it would not finance the property because the single family house in a neighborhood of single family houses is in fact in a commercial zone and if the property were to burn the county would not allow me to rebuild.
Asked on December 22, 2011 under Real Estate Law, California
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
Yes, you should have the right a to the return of your deposit under these circumstances--a failure to disclose that the property is not zoned for a residence (the purpose it is being purchased for) would be a material misrepresentation; or if the seller him/herself did not know this (and so did not misrepresent, or lie), then the contract of sale was still based on a mutual mistake--the erroneous belief that it was a residential property. In either event--misrepresentation or mutual mistake--you should be entitled to rescind the transaction and get your deposit back.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.