What happens when buyers overpay?

by Jamie Henry20 Jan 2015
An agent in Quebec who defeated a disgruntled buyer in court has set a precedent for sales reps across the province.
Alexandre Patricio was taken to court by his buyer client, who believed she overpaid for a condo she purchased in 2010. The buyer, Dimitra Panagopoulou, demanded $7,000 from Patricio, who helped Panagopoulou purchase the condo in Brossard, Que., located across the St. Lawrence River from Montreal.
Panagopoulou paid $169,000 for the condo, but later learned that the property had sold for just $119,000 six months earlier. Patricio said the property had previously been sold between family members, which accounted for the below-market-value sale price. The property had also undergone several renovations and upgrades, further accounting for the increase in price.
Further, Patricio said he informed Panagopoulou of the previous sale price, though she denied that.
The property was later evaluated by three separate appraisers, who said the condo was worth between $125,000 and $148,000 at the time of the purchase.
Still, Quebec Court Judge Claude Laporte sided with Patricio – and, inadvertently, all agents – claiming that there was no proof he knew or should have known that the price his client paid was exaggerated.
The judge also said Panagopoulou wasn’t obligated to purchase the property.
Have your say: should agents be held accountable when buyers overpay?

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