What to do if I was never informed prior toa purchasing propertythat there was pending legal action against the builder?

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What to do if I was never informed prior toa purchasing propertythat there was pending legal action against the builder?

I purchased a condo 6 months ago. This was a bank owned property that was sold in as-is condition. After moving in to my new place I found out through the HOA that there was litigation with the builders of the property regarding work done prior to the purchase. There are issues with water leakage in the parking garage and courtyard that are in dispute. Recently our HOA has increased dues to cover legal expenses. I was never informed prior to my purchasing that there were pending legal actions against the builders. Can I take any legal action?

Asked on May 10, 2011 under Real Estate Law, Oregon

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

Did the legal actions involve your unit specifically? E.g. there was lawsuit that could affect title, a lien against it, etc. If so, the failure to disclose might well be actionable.

However, if the lawsuits, claims, etc. are all involving the HOA, then it is not clear that you would have a cause of action. The bank is not necessarily under any duty or obligation to disclose litigation, claims, etc. involving an unrelated entity--the home owner's association, which presumably has no connection to the bank. Indeed, it is very likely the bank had no knowledge of the extent or possibly even the existence of the litigation and issues, and no knowledge as to the pending increase in dues. Without a duty, there is no liabilty.


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