Can I sue a realtor for fraud?
3 years ago, my husband and I went to purchase a house. Our mortgage broker came back to us and said we needed flood insurance because we are in a flood zone. My husband and I weren’t planning to live in the house for more than a few years, so we didn’t want a home that we couldn’t sell and felt being in a flood zone wasn’t a good option. We told our realtor that we either wanted out of the sales agreement, or for them to knock ,000 off the price. They said they would knock ,000 off. Then, the mortgage broker (who was a friend of our realtor) called and said, “good news! Turns out your not in a flood zone!” and we were back to the original sales agreement. At the closing, the other realtor gave us a piece of paper with our house marked out of the flood zone and had us sign it.
Now, 3 years later…the broker went out of business, and it turns out the mortgage company says our house is in a flood zone. I now suspect we were always in a flood zone, but somehow the realtor came up with some map that showed we weren’t. If I can prove that we were in a flood zone all along and that the realtors presented false documents, do I have a case?
Any help is much appreciated. Our own realtor was absolutely no help to us either. Don’t they have ethics they’re supposed to follow? We were young and stupid and buying our first home. I’ve learned my lesson, but now I’ll never be able to sell this house if it’s in a flood zone. Oh, it’s not just any flood zone…it’s a special zone that costs ,048/year for flood insurance…2 x the amount of my home insurance policy.
Thanks for all of your responses.
I’m just worried since they’re saying it’s in the highest risk flood zone. I’m in the process of fighting that determination, but if it stands, I wanted to know my options against what I think was a fraud.
Your responses were helpful.
Tagged with: 3 years • ethics • false documents • flood insurance • flood zone • fraud • home insurance • insurance • insurance policy • map • mortgage broker • mortgage company • piece of paper • realtor • realtors • risk • special zone
Filed under: Fraud Information
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Homes in flood zones are not unusual. You’re overestimating the negative impact this has on the value. You’d have a hard time proving fraud, particularly if the realtor or broker can produce a valid document that backs up their claim. However, if you can prove they falsified a document or knowingly presented you with a fraudulent document, then you might have a case. The question then is how much might it mean if you win. Probably not much, because as I said, it’s common to be in a flood zone. Finally, yes, your realtor does have ethical and fiduciary responsibility to you unless they also represented the seller in a dual-agent arrangement. If you can’t get satisfaction from the realtor, contact your state’s Real Estate Commission for help.
Look I didn’t even read the additional details and I can tell you the answer. YES! You can sue anyone that has done anthing wrong to you. DUH!
I say absolutely. Make sure you do lots of research on this, because these days nobody has $1,048 to spare.
Sue the original broker and everyone involved since then. It’s called the shotgun principle of law.
Real estate matters are complex and depend on state law. You definitely need a real estate attorney.
I’m pretty sure you have a case. If that retailer made false maps or informed you in a malicious way that either benefited him or made you suffer in any way, I would definatly say you have a case. The real question isnt if you have one or not, but how much can you get from it. I would hire a lawyer if i was you. (they might seem like a waste, but they definatly are worth it in the long run)
I’m not an expert. It appears that you do have a case of fraud against the broker (especially if it’s the same company that now says you’re in the zone), and probably the other realtor. However, your own realtor should have investigated this thoroughly as well, so you would have to include them in the lawsuit.
I’d say you have a case from the original seller right down to all the realtors along the way, and maybe even the mortgage broker who agreed to lend you the money on the premise that the property was not in a flood zone. Contact a real estate attorney, and he/she will tell you exactly what you need to prove your case. Good luck!
As David said, you are really getting a little carried away with the effect being in a flood zone is going to have when you attempt to sell the home in the future. There are LOTS of homes located in flood zones. And those houses are marketed and sold all the time without complications.
Yes, you probably do have a case for material misrepresentation against the seller. You may have a problem with the statute of limitations though, because it is two to four years in most states, and this is already three years old. Check your state statutes.