What is a lender’s responsibility to disclose work that was done without permits regarding a foreclosure sale?

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What is a lender’s responsibility to disclose work that was done without permits regarding a foreclosure sale?

I purchased a foreclosure from a bank in 07/10. This week I found out that the attached carport and small laundry room did not have permits and now the county wants me to have these areas permitted. Do I have any options? The bank did not disclose the fact that no permits were issued for these areas.

Asked on February 2, 2011 under Real Estate Law, California

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

Here is the problem:  purchasing a home in foreclosure you often purchase it "as is."  While lenders have a duty to disclose "material facts", you will need to determine if an inspection and title inspection by your prior to purchase would have revealed the problem before hand and if the terms of the contract negate your ability to go after the bank at this time.  I would investigate, however, if you have any recourse by taking the documentation to an attorney to review.  It is really whose duty it became: their duty to disclose - if you can prove that they even knew about the violation before the sale - or your duty to inspect.  Good luck to you.


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