Indemnification on a Sq. Ft. Misrepresentation

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I am trying to understand the indemnification on a misrepresentation.

For instance, the listing agent misdescribed the sq. ft. in the listing according to the seller. The buyer put in an offer which was accepted. However, before the closing, the buyer found out that the actual footage is less than what was indicated.

1) What’s the legal position for the buyer at this situation? Can the buyer ask for compensation, or terminate the deal?

2) Is this considered as a negligence by the listing agent?

3) If the seller had to reduce the price as a remedy, who will need to indemnify to whom in this case?

4) If the seller had a title insurance and seller was unaware of this mistake, is it covered by the title insurance they had? 

5) if the listing has a note that buyer to verify the accuracy, does it protect the seller and listing agent from any indemnification?


  1. It depends upon how serious this may be.
  2. Not necessarily.
  3. Likely, no one.
  4. No.
  5. No.

Brian Madigan LL.B., Broker

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