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REGION: Jury trial begins in contested home sale
Case centers on prices of comparable homes
By TERI FIGUEROA - Staff Writer | ∞
VISTA ---- A much anticipated civil suit testing whether it is the duty of a real estate agent to disclose the prices of comparable homes to buyers he represents got under way in Vista Superior Court on Wednesday.
The suit addresses what a real estate agent has to do for the buyer, and whether there is a responsibility to provide the prices of comparable dwellings.
At the center of the case is whether an upscale coastal Carlsbad home was worth the $1.2 million that Marty and Vernon Ummel paid for it in 2005 or whether they spent more than they should have.
Their story has been told in national and area media outlets, and has captured widespread attention because of continuing woes in the nation's housing market.
Houses on the street where the Ummels live were selling for as much as $175,000 less than they paid, but the couple say they didn't know that until after the sale closed escrow.
The couple sued their real estate agent, Mike Little, and his employer, ReMax Associates, and say Little kept mum about lower prices down the street to protect the $30,000 commission he would get on the more remunerative sale.
"When they most needed their agent, he wasn't there," the Ummels attorney, Eric Prosser, told the jury during his opening statement. "He was there for himself."
Prosser said Little didn't give the couple the appraisal of their home until after escrow closed. Although the appraisal pegged the home's value at $1.2 million, it also mentioned that a home down the street sold for $100,000 less, he said.
And Marty Ummel again found out about lower prices in the area when she got a flier listing another home for sale in the neighborhood, Prosser said.
Little "had a duty to disclose the facts known to him," Prosser told the panel. "They believed him because he was their agent and he had the duty to be honest."
David Bright, representing Little, said the evidence will show that Marty Ummel "jumped to a conclusion and came after Mike Little" without all the facts.
There were reasons, he said, that three other houses on Amante Court, a desirable tract-home development near Four Seasons Resort Aviara, sold for less.
One had a lap pool that turned buyers off, the attorney said. On top of that, the sellers of that house sought to strike a deal with the buyer ---- the sellers would get to live in the house for two years and pay reduced rent to whomever bought it, the attorney said.
Another house that went for less had no view, and the couple selling it were divorcing, according to Bright. And a third house was not only on a corner lot, backed up against a busy street, but it was too close to overhead power lines for the comfort of most buyers, Bright said.
And also key, Bright said, was that the housing market in 2005 was so hot that prices were rising monthly.
Bright called the house the Ummels bought the "jewel of the neighborhood," with features such as a cherry wood staircase, cathedral ceilings, custom-built balconies and an expansive view.
"Is (the Ummels' home) worth more than the other properties?" Bright said. "You bet it is."
Agents for home buyers, he said, have no duty to look at price listings of comparable homes.
Bright also said the couple had looked at 60 homes, many of them with Little, and had twice backed out of other purchases during escrow because they were unable to sell their Marin County home in time to close any house deals in Southern California.
The defense attorney said Little "exceeded the standard of care. He didn't just meet it, he exceeded it."
The jury of 10 women and two men hearing the trial presided over by Superior Court Judge Lisa Guy-Schall is expected to get the case by the end of next week.
Contact staff writer Teri Figueroa at (760) 740-5442 or tfigueroa@nctimes.com.
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Bernard wrote on Apr 2, 2008 3:44 PM:Purchasing a home of any size is not an easy task. It is complicated even after buying several homes over a 40 year span.
The Realtor mantra is location, location, location. But, there is a lot more.
There are a zillion parts & pieces that are built into a house. Poorly built homes come at every price level including million dollar plus homes.
An ethical Realtor would present both the plus and the minus features of a house, condo, or town house. And would give the buyer the comps without waiting to be asked.
Of course, the Realtor does not know everything, and if ethical will suggest hiring: an appraiser, home inspector, builder, architect, etc.; or a specific trade person such as plumber.
And remind the buyer to evaluate the 'dirt' (hopefully stable dirt).
Why else have a Realtor?
Kathryn wrote on Apr 2, 2008 6:51 PM:I am a little bit bewildered? If I were looking for a home and several were for sale on the same street,(or even in the same neighborhood,) why didn't the buyers ask about them? Did they not have for sale signs in front of them? I know that when we were looking for a home we wanted to live in a certain area we asked questions. We wanted to know what was for sale to compare prices, not just the one the Realtor was going to show us. These people suing the Realtor sound like they are pretty savvy AFTER THE FACT. Makes me question why they weren't so savvy when they were looking. It seems that would be right time to pursue their own best interests. Not after they made their choice. Hmmmmmm.
Roberto1 wrote on Apr 2, 2008 7:49 PM:For 30,000 dollars and no assistance its time to get rid of real estate agents....what good are they? Maybe when I retire i'll become one and get paid for doing nothing.
JuanGrande wrote on Apr 2, 2008 8:46 PM:It went to trial because it is too weak of a case to settle. The appraiser and the mortgage broker already settled for a small amount. These are some deluded rich people, they will not find much sympathy in a North County jury. Judgment for the defendant.
Mr. T wrote on Apr 2, 2008 9:02 PM:The boom in housing has also created a boom in the real estate profession; for example, California has a record half-million real estate licencees — one for every 52 adults living in the state, up 57% in the last five years.
Surely not all of these people are in it for the love of helping others.
Nutz wrote on Apr 3, 2008 6:53 AM:The only thing worse than a real estate agent that would withhold information in order to insure top price for a sale is the lawyer that would convince folks such as Marty and Vern that they had a case if they were to sue for buying a million dollar plus home without doing their own due diligence. I say lock the lawyer and the agent in a closet and don't let them out until they convince each other how worthless their professions are to society!
Lawyers... the bane of our existence wrote on Apr 3, 2008 7:50 AM:California has the most lawyers of any state; New Jersey has the most toxic waste dumps. Know why?
New Jersey got to pick first.
Holly wrote on Apr 3, 2008 11:11 AM:"let the buyer beware"
If you can earn enough money to buy a $1.2 million home then certainly you should be smart enough to know how to choose a Realtor and how to look at the listings for houses in a similar area.
I'm not sure how the Realtor is responsible for this. It's like suing a department store after you bought a sale item with no returns after seeing a similar item cheaper at another store.
Pete wrote on Apr 3, 2008 11:53 AM:The way I see it, the only law suit that should be filed is against these [people] for creating a frivolous law suit. I have no sympathy for the Ummels. No one held a gun to their heads and forced them into a sale. What next, are they going to sue Stater Bros because they discover to their horror that milk is cheaper at Albertsons? ...
PopcornMuncher wrote on Apr 3, 2008 6:10 PM:Take this all with a pinch of salt because this is all from reading articles in the blog-sphere. I read the appraiser settled for 10K, and someone else to do with the mortgage for the same amount. ,,, that Mike Litte was supposed to be arranging a mortgage for the Ummels and this is one of the reasons they were complaining a conflict of interest. That Marty Ummel wanted privacy and quiet. They apparently have at least one offspring in the area - may be why they moved ? she's supposed to be or used to be an administrator at Dominican university. They sold $1M+ piece of property in the bay area. They should be very clear on what's involved in buying and selling expensive property having done it before.
I've always understood that the agent gets paid by the seller, and so while they are supposed to help you, you're insane if you forget who's paying their tab... yes its from your purchase but its the seller that hands over the commission. I read the husband agreed she could sue the agent provided he didn't have to know what it cost - at that point maybe 70,000 usd was being mentioned. This woman needs to get a grip. She was reported as picketing the estate agents at weekends for months. If this is all true it sounds like a pit bull sinking its teeth in and refusing to let go. Sounds like a classic case of someone with far too much time on their hands with money to spare who's used to being able to bully people into getting what they want. I've never met any of these people personally, and none of this is verified - so it should be very interesting what comes out of the court case - whether the realtor was a decent guy or not or whether he behaved in such a way to merit the extreme response from an old woman acting like a pit bull. Oh yeah, and that the people who settled - they probably carried errors and ommissions insurance - often cheaper to pay out than to go to court
Oh Please.... wrote on Apr 3, 2008 6:15 PM:There are 4 houses for sale on my street. All I would have to do is do a quick internet search to check the comps in the area. If I fail to do that and over pay, it's nobody's fault but my own. These people made an impulsive decision and didn't protect themselves like any reasonable person would have. It's Karma.
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