Context
NAWI Europe was contacted by a client who bought a piece of land near Prague. The client thought that the land would be good for building houses. The real estate agent representing the seller confirmed this information verbally. She only learned that the land was classified as undeveloped and construction was not allowed after the transfer of ownership and a review of the urban planning documents.
Task
The client came to us with the following goals:
- To look at the legal options for ending the contract or other ways to protect yourself.
- Think about the responsibility of the real estate company and maybe the seller.
- Reduce the money losses and emotional stress caused by the situation.
Legal analysis and procedure
- We looked closely at the purchase and sale agreement, the reservation agreement, and all messages sent to and from the real estate agent.
- We told the client that the contract (especially the purchase agreement) didn't clearly say what the seller knew about the construction status of the property.
- The real estate agent may have misled the client, but it's not clear who is responsible because the client signed the agreements without reading them carefully.
- We focused on the idea of a mistake or lie before a contract is made, and we also looked into what responsibility the real estate company has according to the law on real estate activities.
Key point
We found proof that the realtor lied about the construction status of the site during viewings and in emails, so they tricked the client. This information was not correct and could be considered a deceptive business practice.
Result
- We settled the lawsuit with the real estate company before the trial began.
- The client received part of the money back. This was 150,000 kroner. It was the difference in value between a building plot and an undeveloped plot in this area.
- We also prepared a future legal strategy for the client. This strategy was for a possible lawsuit against the seller. The lawsuit would be for damages if the situation could not be resolved through an agreement.
“I am very grateful to the NAWI team for their help. I would not have known what to do in that situation on my own. I feel relieved that I was able to fix the situation and have a plan to keep it from happening again.”
Legal areas
- Responsibility for problems with the transfer of real estate
- Practices that are dishonest or misleading / ways to protect consumers
- Duties of real estate agents
Keywords
#RealEstateContract #DeceptivePractices #LandPlots #Lawyer #NAWI
