If a condo complex is put into receivership during the escrow of one of the units, is the seller/selling agent responsible for informing the the buyer?

Get Legal Help Today

 Secured with SHA-256 Encryption

If a condo complex is put into receivership during the escrow of one of the units, is the seller/selling agent responsible for informing the the buyer?

If a new condominium complex with 3 out of 20 units sold is put into receivership during the escrow of a unit, is the seller/selling agent responsible for informing the buyer by law that the complex is in receivership? The buyer in this case would only be purchasing one of the twenty units, and the receivership would not have anything to do with that individual unit sale. I’m wondering what laws specifically would apply?

Asked on February 20, 2012 under Real Estate Law, California

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

Under the real estate laws of all states in this country, a real estate agent (listing agent in your situation) is required to disclose to all potential buyers of a given property all matters that would materially impact the desirabilty to purchase a property or the price paid.

In your fact situation, the receivership situation could very well be material to a potential buyer and should be dislcosed by the listing agent. In doubt, I always recommend over dislcosure of a matter as opposed to under disclosure.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption