Realtor misrepresents Calgary home’s living space

In a complaint filed at the Real Estate Council of Alberta (RECA), Calgary local Pam Whelan said that she was misled by her realtor when the latter misrepresented the living space of the home that Whelan purchased for $800,000 in 2007.
 
Realtor Lori Clark initially listed the property as having 2,500 square feet of total floor area, but Whelan noted that this figure turned out to have been actually inflated by 25 per cent from the actual 2,094 square feet.
 
Whelan claimed that the significant discrepancy made her realize that she actually lost money when she was considering selling the property around five years after she bought it.
 
“I had invested a lot of money in the home,” Whelan told CBC News. “Had I been presented with the more accurate square footage, I could have made a more educated guess on whether or not I wanted to proceed in purchasing the home.”
 
She finally sold the property in 2014 for $775,000, after a lawsuit determined that the property’s value sat at only $840,000 despite her claims of extensive and continuous upgrades to the home.
 
“I lost my retirement,” Whelan lamented. “I went as far as I could go. I exhausted every avenue that I could.”
 
“When you're buying a home — being the biggest investment of your life — just be very, very careful,” she warned.
 
The RECA concluded that Clark misrepresented the home’s living area, but added that “there is no evidence to support this mistake was done intentionally.” The Council gave Clark an advisory note, which does not include actual sanctions.
 
For her part, Clark maintained that she had no ill intent in the sale, having “no explanation as to how this transpired.”

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COMMENTS

  • by Linda 2016-03-16 11:35:48 AM

    Living space and square footage in Ontario mean two different things. If there is a finished basement then that could be considered living space in which case the measurement may not be too far off. Another thought I have, was the sales representative provided the information in regards to the sq. footage by her original sellers, and used by the sales representative. Also, again not sure about Alberta, but in 2007, the GTA had its record breaking year for home prices and sales (prior to 2015). Is it not possible that the buyer purchased the property at an inflated price and the area received a market correction. Just some thoughts. It was noted that the sales representative did not do this on purpose and does not know have it happened. Was it mentioned to the buyer verbally in conversation or was it noted on the mls listing. So much information is missing.

  • by Dodds 2016-03-16 12:49:20 PM

    And where is the Buyer's agent in this saga? Or was the buyer self-represented?

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