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Question
Broker A lists a property with the information that the house is 4,000 square feet in size. She obtained the information from the Tarrant Appraisal District (TAD). She obtained it in writing and gave a copy to the buyer, who was represented by a buyer's broker. Her seller had listed the property two years before, with another broker, at which time the seller had the property appraised by a licensed appraiser. The previous listing expired without the property being sold. Broker A was given a copy of that previous appraisal by the seller, which showed the area to be 3,500 square feet. The buyer and his broker had no knowledge of the previous appraisal of 3,500 square feet. In order to more favorably compare the price per square foot with other comparable properties currently for sale, Broker A took the seller's list price and divided it by the TAD's 4,000 square feet. As a result, her seller's property appeared to be a much lower price per square foot than the comparable properties for sale. The purchaser and his broker submitted an offer of $275,000. Upon their offer being accepted and receipt of the signed contract from the seller, Broker A.
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