Can I sue the seller and the seller’s agent for fraud for withholding the condo covenants relating to our ability to rentthe unit?

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Can I sue the seller and the seller’s agent for fraud for withholding the condo covenants relating to our ability to rentthe unit?

We purchased a condo 3 years ago. The listing stated it would be a “Great Rental Property”. The seller gave us a copy of the condo covenants but withheld 3 updated rules regarding rental properties – essentially they do not allow rentals for any reason. Now flash forward to today and we have had to move out of our condo out of state and we can’t lease it to cover the mortgage. Seller and seller’s agent were very aware of their actions. Can we sue them for fraud?

Asked on September 3, 2011 under Real Estate Law, Georgia

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

In any sale of real proeprty in this country, the seller is required to disclose all facts known to the seller that would materially impact the property's desirability by a purchaser or price paid. The listing for the property that assisted in inducing you to purchase it mentioned its ability to be a "great rental property".

Part of the reason why your purchased the property was its ability to be rented out. You have just found out that this is not the case. You have the factual basis to sue the selelr and even the listing agent for negligent misrepresentation, intentional misrepresentation, concealment and breach of contract.

Since sale closed over three years ago, you may have some statute of limitations issues running.

I recommend that you consult with a real estate attorney as to your legal options.

Good luck.


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