Can we rescind the sale of the home that we just purchased?
Question Details: Last Monday, my husband and I bought a house with a big fenced in yard for our dogs. As we were at the closing, signing our paperwork, the seller of the house told the next door neighbor that a portion about 1/3 of our soon to be property actually belonged to her and was not part of his property at all. On our way to the property we recieved a phone call from my Mom saying that the neighbor is claiming that a big chunk of the land is actually hers and she was going to tear down the trees and put up a fence. We feel like we were tricked, either by the seller or the real estate agent. Then, 2 days later, the agent offered to rescind the sale and we happily agreed but the sellar wouldn't agree. Now it is a week later and we find out that we can't rescind and are stuck with the house. Do we have any legal recourse? We needed that land for our 4 Newfoundland dogs weighing between 120 lbs-185lbs. The biggest reason we purchased this house was for the big fenced in backyard.
You can't necessarily take what the neighbors say at face value--they could be mistaken. You should have the land surveyed to verify the borders. If indeed the size of the lot was misrepresented, then your options are:
1) In theory, rescind the sale--but if the money you paid to the seller is mostly gone (e.g. used to pay off his mortgage), then you can't rescind, because you can't get the money back. (His mortgagee or lender was an innocent 3rd party and cannot be made to return money it accepted in good faith.)
2) Sue the seller, his agent, and the agent's real estate agency or company for compensation, such as the difference in value between the house with the land as advertised and the house with the smaller plot, and also the cost to put up a fence at the correct boundary.