When purchasing a condominium, is the area declared by the seller the living space, excluding or including the thickness of the interior and exterior walls?
During a real estate transaction, should preliminary agreements reached between the parties be reflected in the deed of sale?
A seller who acquired a luxurious apartment over ten years ago puts it up for sale. Relying on the descriptive sheet that was given to him at the time of the property acquisition, the seller declares that the apartment has a living area of 4,200 square feet (sq.ft.).
After intense negotiations, the parties agree on a price of $2,200,000. The buyer adds a clause to the agreement stating that the living space, excluding the thickness of the interior and exterior walls, is at least 4,200 sq.ft. This clause is included in the deed of sale.
A few months pass. The buyer, after consulting the certificate of location, discovers that the living space is only 3,781 sq.ft. He goes to the Court* and claims an adjustment in price of $196,000.
The court concludes that the seller only had to verify the certificate of location "before giving [...] a guarantee of size. If, due to negligence, he failed to do so, he must suffer the consequences." Once the guarantee of size was given in the preliminary agreement, the notary was required to include it in the deed of sale.
The seller is the cause of his misfortune and is ordered to pay the requested amount to the buyer.
Whether you measure like a foot or even like a "master," make sure to verify the accuracy of your measurements before signing an offer to purchase.
*CS 500-17-043239-089
