A Dobbs Ferry couple claims they were manipulated into selling a rental home on the cheap in Westport, Connecticut, so that the buyers could “flip” the property for profit.
Wade and Judy Haddad sued William Raveis Real Estate, Jeannette Dryburgh and Robert Appell on Sept. 16 in Westchester Supreme Court.
The Haddads accused the agents and broker of fraud for allegedly working with the buyer “with an eye toward subsequent deals.”
Neither Dryburgh nor Appell responded to email requests for their side of the story. “At this time,” Raveis’ attorney Albert Durante responded, “we are offering no comment.”
The property in question is a 3-bedroom, 2.5-bathroom Colonial built in 1945 at 53 West Parish Road in Westport.
The Haddads bought the property in 2014, transferred it to 53 W Parish Road LLC, and rented it out.
In January, they claim, Dryburgh called them and urged them to sell the property because the Westport market was hot.
They believed the house was worth $830,000, according to the lawsuit, but agreed to list it at $815,000 “to create interest.”
Appell, who allegedly worked for Raveis through Jeannette Dryburgh & Associates, was the agent.
The Haddads claim they had concerns about their representatives from the beginning.
For instance, the Multiple Listing Services showed the last purchase price as $380,000 in 1999 and omitted the higher price that the Haddads paid in 2014, making it appear that the property was worth less than its actual value. The couple does not say how much they paid, but according to a current MLS report it sold for $665,000.
Then they were persuaded to accept a $775,000 offer in April. That deal “blew up” after the prospective buyer asked for a greater price reduction.
A couple of weeks later, a new deal for $770,000 was lined up with Christopher and Beth Hancock.
The Haddads claim they were told that the Hancocks had sold a house in Fairfield, Connecticut, moved to North Carolina to ride out the Covid-19 crisis, and wanted to move back to Connecticut and buy the Westport property for their primary residence.
The Hancocks had actually sold a house in Westport for $1,275,000, the Haddads allege, and their plans for the Parish Road house was to “flip the property for a profit.”
Had they known about the buyers’ financial wherewithal and intentions, the Haddads claim, they would have realized that their property had been undervalued.
The Hancocks are not named as defendants or accused of wrongdoing.
The Haddads also agreed to a 5% dual agency commission, in which their representatives collected the full commission on both sides of the deal.
The arrangement created a conflict of interest, according to the complaint, and the Haddads would not have agreed to dual agency if they had known that the property would be flipped.
The property is back on the market, according to Realtor.com, and is listed by Jeannette Dryburgh & Associates, Robert Appell and William Raveis Real Estate.
The asking price is $995,000. That’s $225,000 and 29% more than it sold for five months ago. The listing states it has been “perfectly renovated,” and it appears that the renovations were done after the Haddads sold the house.
Besides fraud, the Haddads accused Raveis, Appell and Dryburgh of breach of fiduciary duty, breach of contract, breach of covenant of good faith and fair dealing, negligence, interference with business relations, reckless misrepresentation, conspiracy, and aiding and abetting fraud.
They are demanding unspecified damages to be determined at trial.
They are represented by Manhattan attorney Jordan I. Rothman.
