I purchased my current house in Oct 2005 from a listing agent who also owned this house. I didn't have my own agent to represent me in this transaction. He was going through foreclosure and I was the last interested buyer during his pre-foreclosure period. He prepared our purchase contract. Before we both signed the contract, I asked about the real estate property tax amount because I thought it was rather low for the area (shaker heights/cleveland). He told me that they got "lucky" for getting a low assessment value. He also said that the house is actually in Cleveland, not in Shaker Heights, so the tax is cheaper. I didn't think anything of it after that.

In November 2006, I received a letter from City of Cleveland, informing me that the 10-year tax abatement is expiring at the end of 2006 and my property value for tax purposes will be adjusted. I didn't really understand the letter when I received it because I didn't know anything about the tax abatement granted on the house. As a result, my tax went up by more than twice of the original tax amount. The title search did not show any existing tax abatement.

If I knew that the tax abatement existed and expiring that soon, I would've never bought the house and I feel like he withheld this information to proceed with the transaction. I talked to one attorney after my tax went up and he told me that the seller didn't have to tell me about the tax abatement and it was my fault that I didn't have my own agent and/or attorney to look through all the documentation because it I had a lawyer, he would have picked up the fact that the assessed value of the house was unusually low and probably found out the truth.

Even though I have 30-year fixed mortgage, I feel like I had those variable rate loan because after 2 years, my monthly payment went up by $250... Don't I have some kind of recources? Or is it too late to do anything? Sue the seller/listing agent? The realty company that he belongs?

I am not sure there is any requirement to notify since property tax rates and values actually can vary by person and usage of house. If you live there often there is a lower assessment than if it is a rental house, or latter used for business use. Also property tax can change yearly as well as new assessments of value done.

And as long as they disclosed there were an real estate agent, normally you have a obligation to proprety investigate liens and other legal obligations on the home.

I would say no real case

1 listing agent, had nothing to do with the sale, they only listed it for sale.

2. seller, do you have any proof of asking them about the lower tax? Hold to sue without some solid evidence he lied. ** and you would have to show he knew about it, how long had he owned it, was it always the lower tax while he had it?

Thank you! I just wanted to clarify that the listing agent = seller (previous owner). He lived there for 10 years (since the beginning of the tax abatement). Can I prove that he lied or he knew about this? No, I can't. But I thought that the property owner was the one apply for the tax abatement, so I assumed he should've known. Oh well... Lesson learned..

But what the heck, also just having a legal case does not mean you can't get an attorney and threatenn to sue and even sue, If they are bluffed enough, or if you get a judge who is strict, you never know, Remember if the law was 100 percent for sure, there would be no need to attorneys to sue one another. I have won more cases in the past on bluffs than on evidence ( or at least settled out of court on them)

What exactly would you be suing for? To get out of the contract? Money settlement? Can you find out what the abatement was for, and possibly get it renewed?