Real Estate Agents' Liability For Misrepresentation As To Size Of Property

In Cameron v. Terrell & Garrett, Inc., 618 S.W. 535 (1981), a Supreme Court decision out of Texas, the Supreme Court held that a purchaser could state a cause of action and bring a successful claim against a real estate agent under that state's deceptive trade practices-Consumer Protection Act.

The argument by the purchasers was that they were consumers within the meaning of the Act, mentioned above, and that they were entitled to bring a cause of action against the real estate agent where they purchased a house, and the house had been represented to be 21400 sq. ft., but in fact it only had 2,245 sq. ft. The purchasers alleged damages of $3,419.30 which they computed by multiplying the cost of the house per sq. ft. as represented, which was $22.06 (x) the sq. ft. deficiency of 155 sq. ft. They also sought treble damages, reasonable attorney fees and court costs.

The Supreme Court, reversing the lower decision, held for the plaintiffs and allowed not only the damages mentioned, but also the treble damages, attorney fees and court costs, as authorized under the special Act, noted earlier.

Copyright by Dr. Mark Lee Levine, Denver, Colorado, 1982. All rights reserved.

Although the Real Estate Licensing Board is unaware of any similar ruling or decision holding that such activity violates North Carolina's Deceptive Acts or Practices Act, nevertheless it underscores the importance for real estate brokers and salesmen to accurately measure and state the square footage of structures.