ask george & chuck
July 16, 2007

Square-footage discrepancies, effective dates of contracts ...
Answers to real estate questions as appearing
in the Houston Chronicle

Dear George: I recently signed a contract to purchase a 2,840-square-foot house, according to the listing in the MLS. The appraisal found that the actual square footage of the residence is 2,540. Do I have any recourse?

Answer: Only an attorney can advise you as to the merits of litigation. However, here are some questions to consider: Do you have a case you can win? Does the party you may sue have sufficient resources to pay if you win the lawsuit? Your attorney should be able to help you with both answers. It is not unusual to find discrepancies between the appraisal district's square footage and an owner's statement of square footage. Many multiple listing services carry a disclaimer regarding the square footage listed with each home.

Dear George: I just sold one of my rental houses through a REALTOR® and feel he performed his duties incompetently. I would like to file a formal complaint against him. How can I go about doing that?

Answer: To file a formal complaint against a Texas real estate licensee, visit the Texas Real Estate Commission's Web site and select the "Complaints, Consumer Info" tab at the top of the page. Before you file your complaint, you may wish to pursue another avenue. You state in your e-mail that this person is a REALTOR®. If this is true, contact the Texas Association of REALTORS® at 800/873-9155 and ask to speak with someone about its free ombudsman service. The association assigns a REALTOR® ombudsman to make your point to the REALTOR® involved and gives the REALTOR® involved an opportunity to explain his actions. You reserve the right to file a complaint with TREC; however, this step might clear up some misunderstandings.

Dear George: I was buying a home, but my lenders are very slow and my interest rate is way too high. I signed a Texas One or Four Family Residential Contract (Resale) before I knew if my loan would be approved and what its terms would be. However, I have not received a seller's disclosure. Paragraph 7B(1) of the contract states that the seller has three days after the effective date of the contract to provide one, or the contract can be terminated by me for any reason. When is the effective date if I signed the contract and it was accepted on a Monday?

Answer: The effective date of a real estate contract is when it is signed by all parties to it, any changes are initialed by all parties to it, and the last person submitting the offer or counteroffer has been so informed. Once that occurs, the offer becomes a contract. If the effective date on the contract is not filled in, the date the contract is received by the title company is usually accepted as being the effective date.