What is my recourse if I bought a house but the seller didn’t disclose that the HOA was requiring them to do a lot of work to property?

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What is my recourse if I bought a house but the seller didn’t disclose that the HOA was requiring them to do a lot of work to property?

I’m wondering if anyone other than seller is responsible for failure to disclose? Was the HOA required to inform escrow? I feel that if I take the sellers to arbitration, they wouldn’t pay up if judgement is issued against them?

Asked on February 15, 2019 under Real Estate Law, California

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

The HOA is not responsible: only the seller is liable for his/her failure to disclose. 
If the seller was aware, as seems the case, that repairs or other work had to be done to the property and failed to disclose same, that is fraud. Fraud would provide a basis to sue the seller (or if there is an arbitration clause in the contract of sale, go to binding arbitration). If you win in court or arbitration and the seller doesn't pay, you could use collections methods (e.g. putting a lien on their new home; garnishing their wages; etc.) to get the money. If the issues are as extensive, and therefore the amount of money to which you are potentially entitled (e.g. the repair cost) is as great as you indicate, you should retain an attorney to help you. 


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