Q: If a seller agent misrepresents portions of a builder contract on a sale, can buyer cancel and have earnest returned
1. Buyer did not know deposit was listed as non refundable and seller agent presented contract on a way that made it seem as thought they had a 30 day review period to terminate and receive funds back, was also represented that HOA doc concerns were included as termination right under 30 day review period.
2. Buyer did not know the price was non negotiable
3. Seller agent never spoke of earnest money as a non refundable deposit.
4. Buyer agent did not have opportunity to review points outlined by builder contract until after signed and sent over to all parties nor the opportunity to preview language.
5. Contract doesn’t seem valid to possible fraudulent misrepresentation
A:
If seller (or seller through is agent) misrepresented the terms of the deal or otherwise mislead you into signing a contract you may have a right to terminate and demand your earnest money back.
But, your rights will be dependent upon your ability to prove the misrepresentation. I recommend that you contact an attorney to discuss your rights, remendes, and risks prior to proceeding.
Bruce Alexander Minnick agrees with this answer
A: Sounds like the buyer was not represented by legal counsel and did not read the buy-sell agreement completely. Because this deal was based on a written contract, it is not enough for the buyer to say "buyer did not know" or "seller agent did not inform buyer" or buyer did not have opportunity to review points outlined by builder contract." Unless the buyer can prove that there was no way the buyer could have known about any or all of these problems there is no way to prove "fraudulent misrepresentation" on the part of the seller/builder or the seller's agent.
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