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Home Verdicts Real Property (SB) NO RECOVERY FOR BUYER FOR PROPERTY MISREPRESENTATION BY SELLER & SELLER’S BROKER (April 2011)
NO RECOVERY FOR BUYER FOR PROPERTY MISREPRESENTATION BY SELLER & SELLER’S BROKER (April 2011)

# 1338337, Thomas & Linda Gardner v. Ronald Goldie et al. , filed 7/13/09

Defendant’s Attorneys: Fredric W. Trester for Susan Perkins & Sotheby International

Fred A. Fensby for Roald Goldie, Trustee of 1707 Trust

Verdict: Defense                                                     Dept. 4, Hon. James B. Brown

Plaintiffs purchased a $5 million residence on a one-acre parcel in the Montecito area from Defendant seller, relying on the representations made by the seller’s broker/agent about the location of the southern boundary line, which had prominent features including a recirculating artificial pond, a sitting area and a pathway, all as shown in pictures of the property posted on Defendant broker’s website and on the MLS listing.   These property representations, amounting to approx. a quarter-acre of total land area and comprising what Plaintiffs claimed was the main view corridor of the property, were false.  Plaintiffs sued for rescission, negligent misrepresentation and duty to disclose.  Defendants claimed that they had expressed uncertainties about the specific property line and had advised Plaintiffs to obtain their own survey, while also relying on standard real estate advisories in purchase agreements that agents are not qualified to give advice about property lines.  Plaintiffs, who made their living buying and selling properties after making improvements, first learned of the actual property line location after their purchase, when they hired a surveyor to confirm boundary wall locations.  Jury determined Defendant broker made a false representation, but also that the broker honestly believed the representation to be true and had reasonable grounds for so believing.  As to the Defendant seller, the jury found that he did not intend Plaintiffs to rely on the representations.

 

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