MLS Listing and Seller Disclosure Said Central Air - No Central Air

[PawPrint53]

We put an offer on an out-of-state condo to use as a rental (we have another rental in the same city that will be our retirement home). Our daughter will live in the rental. The MLS listing said central air, and the seller checked central air on the disclosure form and said it was working as well as checking wall unit (working). We made an accepted offer based on the unit having central air. The home inspector didn't see any ducting that would indicate central air. Since we had purchased a house with both central air and a wall unit (owners hadn't bothered to take it out after installing central air), we didn't think anything of it until we got the inspection report.

I haven't heard back from my agent after sending her an e-mail saying that the owner misled us by indicating that the unit had central air. So I'm wondering what my options are with this transaction? I don't want to walk away. However, I don't like the idea of being misled into thinking there was central air. What would some of you real estate investors do?

Thank you.

[jba302]

The inspection report is grounds for avoidance of the offer since there was a material misrepresentation. You could reduce or renegotiate your offer to whatever you feel is reasonable to do the installation, or simply walk. You may even be able to have the condo association give you an idea of the installation cost.

[arebelspy]

Typically the listing is "verify yourself" - that's something you'd need to catch in the inspection.  You did.

Now it's up to you how to proceed - do you still want the property without central air?  You can reduce your offer, if you'd like.  Or you can proceed.

The ball is in your court, so decide what you want.

[Milspecstache]

I'd probably ask for a reduced sale price and explain the circumstances.

[DoubleDown]

I agree with the above. You can always walk away. Personally, if I was in your shoes and wanted to proceed with the purchase, I'd let the sellers know that you'd like either a reduction in the sale price based on the discovery of no central A/C, or for them to have it installed. I'd try to do this as pleasantly as possible, expecting that you might have to reach some kind of settlement and not really anticipate them paying for the full cost of new central A/C. If you really wanted to play hard ball, you could hint at a specific performance lawsuit (forcing them to deliver on what was promised in the listing), but I'm not sure this would really stand up since you do have the option at this point of walking away. Would need to consult a lawyer on that point.

[swick]

All good advice here. having had to walk from several deals when we were buying our first house I quickly learned to question what else they weren't telling us? Especially after blatantly lying (in your case it seems several times) on the property disclosure.

Also, as it is a condo, you should have been given contact info for the condo or strata association. They may have some bylaws or restrictions to what you can put in, and they might know more info about the property then the owners. Also if there are any names and phone numbers listed in the strata minutes, you might want to call several of the other owners and ask about special strata increases etc.

Our building inspection  reveled black mold int he attic and a crumbling firewall. The roof had been replaced two years prior and the contractor did a shit job (there was sky visible where they had cut a hole to vent the bathroom exhaust. After multiple phone calls back and forth with the realtor and realtor who managed the strata...getting no where, I called the President of the strata council and she mentioned they were aware of some roofing issues and 6 other units were going to need to be fixed up in the future (this was after they already put a 20,000 fee on tow years ago to pay for the roof and siding repairs)

So...got a phone call eventually from our realtor and said "Good News! it is the strata responsibility, you won't have to pay out of pocket!" which means....you will pay for it, and all the other unit repairs though additional strata fees. We walked, and I am so glad we did.