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False Advertising question

 
 
jcboy
 
Reply Sun 10 Dec, 2006 03:52 pm
I purchased a condo conversion in CA. Paid 380K for a one bedroom. The condo was listed at 834SF but it really isn't that large. If you use the legal description of livable space, the actual SF is 712SF (probably a little less). Would this not be classified as false advertising? Thank you in advance for your help.
 
Tico
 
  2  
Reply Sun 10 Dec, 2006 04:28 pm
While 122 square foot difference does seem a bit much, ask the real estate agent how the area was calculated. BOMA standards usually require the area to be from the center line of any shared wall and to the outside surface of any unshared wall (usually exterior walls). Depending on the construction, some walls, especially exterior ones can be very thick. Also check if any common areas were included (corridors, lobbies, etc.). And it's probably best to talk to your lawyer for the standards in your area.
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jcboy
 
  2  
Reply Mon 11 Dec, 2006 08:17 pm
Thank you Tico for responding. After reading all the paper work it does list the condo as 834SF, however in very small print it states the padio is included in the square footage. I was under the impression SF meant actual living space. I guess I should read the fine print more often, but I do thank you for your quick response.
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happycat
 
  4  
Reply Mon 11 Dec, 2006 08:46 pm
pardon my french, but Holy Crap!! $380k for 712sqft and only 1 bedroom!!!!!
You Cali people are crazy! Shocked
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jcboy
 
  1  
Reply Mon 11 Dec, 2006 09:34 pm
happycat wrote:
pardon my french, but Holy Crap!! $380k for 712sqft and only 1 bedroom!!!!!
You Cali people are crazy! Shocked


You should have seen others I looked at, some were quite a bit smaller, no garage and needed a lot of work and they started at 400k for a one bedroom condo.
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jcboy
 
  2  
Reply Sun 31 Dec, 2006 12:28 pm
Just a little update on my condo.

I paid an appraiser $250.00 to come out and measure. The sales office is advertising the one bedrooms at 834 SF and the actual SF is710 and that does include the padio. I confronted the sales office, which is still located on the complex as they have only sold one third of the units. The real estate agent admitted to me she knew they SF was off but didn't did not tell me because I would have backed out of the deal.

I found a lawyer through findlaw.com and he says I have a very strong case against the builder and the real estate agent. I will see him next week and pay the retainer.
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jcboy
 
  2  
Reply Tue 23 Jan, 2007 11:34 pm
Another little update on my condo problem. It has now turned into a class action suit because I passed out copies of my actual appraisal of my unit and others had theirs appraised and they are the same size except for the ones with the fireplaces. A few feet smaller. Since I am he one who started this whole mess the sales office has threatened me with a cease and desist,, told them I welcome it because the other 25 tenants who have signed up said once I am served they will picket the sale office on the weekend. My question if I am served with a cease and desist can I still protest with the other? I was thinking of wearing a pink tu tu and a T-shirt that says Norma Rae. According the local sheriffs department I am within my right to do so.
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Tico
 
  3  
Reply Wed 24 Jan, 2007 06:22 am
jcboy wrote:
I was thinking of wearing a pink tu tu and a T-shirt that says Norma Rae. According the local sheriffs department I am within my right to do so.


I'm sure you are! I'll be watching the news to see you! Very Happy (Sorry -- I couldn't resist.)

I can't advise on the law, especially since I'm not in your area, but it sounds as if you're right, jcboy. Good going!
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jcboy
 
  2  
Reply Sat 27 Jan, 2007 04:53 pm
Hehe I did contact the news but hey haven't responded yet. I was served with a cease and desist order from the builder's attorney so my attorney advised me to lay low for a while and not to stir up any more trouble so I've put the tu tu in the closet until further notice. Although he did say that me telling the other tenants was a good thing. The head sales lady stopped me right after I was served and told me the builder can do anything he wants, he can sell the remaining 60 units for One Dollar each if he wants. I pulled out a twenty-dollar bill and said hold 20 units for me and I'll become a slumlord. Cool

All the tenants involved will be having a meeting with the attorney here on the complex in my unit next Wednesday, the builder and sales team will not allow us to use the clubhouse, which belongs to us btw. I hope I have room for everyone since the place is much smaller than I expected.

Our biggest hurdle is one clause in the contract that states it is up to the buyer to have his unit appraised before the close of escrow, well everyone involved paid Wells Fargo $400.00 for that appraisal and of course nobody received it before the closing.

I am a first time buyer and so are most of the other tenants, my attorney also informed me there are plenty of case's in CA that have had that part of the contract voided for first time buyers. I guess I'll find out how everything is going on Wednesday.
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Noddy24
 
  2  
Reply Sun 28 Jan, 2007 12:33 pm
Jcboy--

Good luck.
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jcboy
 
  2  
Reply Sun 28 Jan, 2007 08:01 pm
Thank you Noddy. This whole deal has made me ill. I have lost over ten pounds the last month. I never thought they could be that deceitful in selling their units. Boy have I learned a lesson.

Sales on the units have dropped quite a bit. I haven't seen new tenants moving in for three weeks now and the sales lady said it's all my fault and I better pay close attention the cease and desist order or they will sue me if they lose one sale. She said she has been receiving emails and phone calls daily from potential buyers giving her a hard time about the square footage and said it's all my doing.

I had every right to tell the tenants already living here about the misrepresentation of my unit and I have no control over whom they choose to talk to. And at this point I don't care if my attorney fees total to 15 grand and he gets his 40% as long as I can stop them from ripping off another 60 people, most of which are young couples and first time buyers.

Money well spent as far as I'm concerned. :wink:
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happycat
 
  2  
Reply Sun 28 Jan, 2007 11:15 pm
jcboy, I also wish you good luck in this. Kudos for being so pro-active; many would have just let it go - which is, of course, exactly what the developer wanted.
Keep us posted.
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jcboy
 
  2  
Reply Wed 31 Jan, 2007 01:00 pm
Thank you Happycat.

When I get mad I get even lol.
I have quite a few tenants coming to the meeting tonight and I'm a little nervous.

I received a nasty certified letter from the HOA because I left a few copies of my appraisal on peoples door steps that were not home. Apparently I'm not even allowed to do that.

Well the sales office made up a few home made signs and placed them by the trash dumpsters, I took pictures of the signs and emailed them to the HOA asking if the signs were okay to post, I didn't tell them who posted the signs. They responded back rather quickly and ordered me to take them down. So I forwarded the email to the sales office and informed the HOA to make sure they are removed.
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jcboy
 
  2  
Reply Thu 1 Feb, 2007 01:16 pm
Another update. Our attorney met with quite a few tenants in my building last night. First he wants to do is to file a lawsuit and an application for a temporary restraining order and preliminary injunction. In order to strengthen our position. Our biggest hurdle is like I stated earlier is the clause about the buyer being responsible for measuring their own units before signing the contract. But what we found out last night from the other tenants was once the tenants signed the purchase agreement and left a deposit and before they signed the contract they were not allowed back in the unit, so nobody was given a chance to have their unit sized. So that's in our favor. Then he says our next step is to go before an arbitrator "retired judge" and ask him to void that section of the contract.

Another good thing is according to my attorney my cease and desist is a bunch of bull to try and scare me. I can talk to anyone on that complex as long as I tell them about my own unit and not mislead anyone about the size of their own. So the pink tu tu will be out and worn this weekend.

I contacted three local news stations investigating reporters regarding this misrepresentation, Channel 2, 4 and 7. Well yesterday I received a call from channel 4 and they are interested in coming out to speak with the tenants, I won't wear the tu tu during the interview.
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sozobe
 
  2  
Reply Thu 1 Feb, 2007 01:22 pm
Wow!

Just saw this for the first time, interesting to read from the beginning.

Your $20 bill/ slumlord line was great!

Hope this all works out for you.
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happycat
 
  2  
Reply Thu 1 Feb, 2007 03:54 pm
jcboy ~ good decision on nixing the tu tu for the interview ;-)
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squinney
 
  2  
Reply Thu 1 Feb, 2007 06:00 pm
Cool! Glad yu are going forward. Such decietful practices should not be allowed.

As to use of the clubhouse and a few other matters, since the developer is still selling units, the HOA is likely still in the hands of the developer, not the tenants. It more than likely won't be turned over to you and your neighbors until a set percentage of homes have been sold or some other criteria has been met. That's probably their line of thinking regarding use of the clubhouse for your meeting.

I'll continue to read with interest.
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Chai
 
  2  
Reply Thu 1 Feb, 2007 08:20 pm
Yeah, great story.

Looking on....
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jcboy
 
  2  
Reply Tue 13 Feb, 2007 10:46 pm
Thank you all for the response and support.

Here is my attorney's response to the builder's attorney. I have left out names to protect the guilty Cool

Our File No.: BLANK

Dear Mr.:

This firm has been requested to represent several purchasers of condominiums at BLANK We have been told that your firm represents in some capacity, BLANK the seller and developer of the property.

Because it seems readily apparent to us, even from a cursory analysis, that your clients have engaged in rather blatant false and misleading advertising concerning the square footage sizes of various condominiums, and may still be using false and misleading advertising brochures despite now stamping a more prominent disclaimer, we felt that this situation should be capable of prompt resolution. The violations of multiple Business & Professions Code section is near self-evident.

We are aware that you have written that your client was not aware, until notified by one of the purchasers, Mr. ME, that the advertised square footage was at all inaccurate. Without any doubt, in the exercise of reasonable diligence, your client should of and would of known what the square footage of the condominiums it was selling really are.

The advertised square footage is so grossly overstated, that we simply do not believe that any competent real estate developer could ever not notice the discrepancies. The so-called "sufficient warnings" and "sufficient protective provisions" claims do not vitiate your client's wrongful conduct.

In any case, we would welcome and encourage an opportunity to seek the resolution of this issue short of full-blown litigation. Please call at your earliest convenience.

Very truly yours,
BLANK

After speaking with several attorneys I believe I have found the right one and I'm very happy with him so far.

More to follow.
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Noddy24
 
  2  
Reply Wed 14 Feb, 2007 10:13 am
The mills of the gods grind slow, but they grind exceeding fine.
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