Disclosure for condo

[Anonymous]

Does anyone know the legal requirements for disclosures? Specifically, what happens if the seller finds out about something major between signing the contract and disclosure form and closing on the sale? Turns out a seller was provided an update by the condo board after we ratified the contract. However, we didn't find out about this update until after closing. It's an update that's going to cost a significant amount of money on our end. Any advice is appreciated.

[Anonymous]

Op here. I forgot to note the condo is in DC.

[Anonymous]

Anonymous wrote:Does anyone know the legal requirements for disclosures? Specifically, what happens if the seller finds out about something major between signing the contract and disclosure form and closing on the sale? Turns out a seller was provided an update by the condo board after we ratified the contract. However, we didn't find out about this update until after closing. It's an update that's going to cost a significant amount of money on our end. Any advice is appreciated.

The condo board should have sent you a condo questionnaire. Most banks require this. If they sent you a questionnaire which didn't reflect the update you are talking about and the update happened before they sent you the questionnaire, then it seems like they were hiding it from you. If the update happened after you were sent the questionnaire, then I don't think there is much you can do. Either way, the only thing you could do would be to sue, and that's expensive and likely not worth your time or the legal fees.

What exactly was the update?

[Anonymous]

Anonymous wrote:

Anonymous wrote:Does anyone know the legal requirements for disclosures? Specifically, what happens if the seller finds out about something major between signing the contract and disclosure form and closing on the sale? Turns out a seller was provided an update by the condo board after we ratified the contract. However, we didn't find out about this update until after closing. It's an update that's going to cost a significant amount of money on our end. Any advice is appreciated.

The condo board should have sent you a condo questionnaire. Most banks require this. If they sent you a questionnaire which didn't reflect the update you are talking about and the update happened before they sent you the questionnaire, then it seems like they were hiding it from you. If the update happened after you were sent the questionnaire, then I don't think there is much you can do. Either way, the only thing you could do would be to sue, and that's expensive and likely not worth your time or the legal fees.

What exactly was the update?

NP here:
An assessment, duh. Sounds like the seller had some inside information. These things don't just miraculously appear out of thin air.

What does the contract say, OP? Is there any wiggle room to get out of the deal? How much money are we talking about? 10K or 50K?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Does anyone know the legal requirements for disclosures? Specifically, what happens if the seller finds out about something major between signing the contract and disclosure form and closing on the sale? Turns out a seller was provided an update by the condo board after we ratified the contract. However, we didn't find out about this update until after closing. It's an update that's going to cost a significant amount of money on our end. Any advice is appreciated.

The condo board should have sent you a condo questionnaire. Most banks require this. If they sent you a questionnaire which didn't reflect the update you are talking about and the update happened before they sent you the questionnaire, then it seems like they were hiding it from you. If the update happened after you were sent the questionnaire, then I don't think there is much you can do. Either way, the only thing you could do would be to sue, and that's expensive and likely not worth your time or the legal fees.

What exactly was the update?

NP here:
An assessment, duh. Sounds like the seller had some inside information. These things don't just miraculously appear out of thin air.

What does the contract say, OP? Is there any wiggle room to get out of the deal? How much money are we talking about? 10K or 50K?

Is in the tens of thousands. We already Purchased the condo.

Here's what happened. We ratified the contract on a Monday. On a Wednesday the seller was notified of actions the board would take regarding structural problems. No one told us. Then we closed four weeks later. Now we have an assessment for problems the seller was informed of prior to closing but did not tell us.

[Anonymous]

I actually think buyer is on the hook. When I bought a condo I investigated their finances. My condo had millions in the bank and it was enough to cover huge losses in one year. There wouldn't be an assessment if their finances were in good order.

[Anonymous]

Anonymous wrote:I actually think buyer is on the hook. When I bought a condo I investigated their finances. My condo had millions in the bank and it was enough to cover huge losses in one year. There wouldn't be an assessment if their finances were in good order.

But the issue isn't necessarily about the disclosure of finances. The issue is that the buyer didn't disclosure structural damage he most likely knew about. A letter was mailed to owners about the structural damage prior to closing on the condo.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Does anyone know the legal requirements for disclosures? Specifically, what happens if the seller finds out about something major between signing the contract and disclosure form and closing on the sale? Turns out a seller was provided an update by the condo board after we ratified the contract. However, we didn't find out about this update until after closing. It's an update that's going to cost a significant amount of money on our end. Any advice is appreciated.

The condo board should have sent you a condo questionnaire. Most banks require this. If they sent you a questionnaire which didn't reflect the update you are talking about and the update happened before they sent you the questionnaire, then it seems like they were hiding it from you. If the update happened after you were sent the questionnaire, then I don't think there is much you can do. Either way, the only thing you could do would be to sue, and that's expensive and likely not worth your time or the legal fees.

What exactly was the update?

NP here:
An assessment, duh. Sounds like the seller had some inside information. These things don't just miraculously appear out of thin air.

What does the contract say, OP? Is there any wiggle room to get out of the deal? How much money are we talking about? 10K or 50K?

Is in the tens of thousands. We already Purchased the condo.

Here's what happened. We ratified the contract on a Monday. On a Wednesday the seller was notified of actions the board would take regarding structural problems. No one told us. Then we closed four weeks later. Now we have an assessment for problems the seller was informed of prior to closing but did not tell us.

OP Did you finance the purchase of the condo? If so, your lender should have requested a condo letter from the condo association. If the letter went to the seller a few days after you ratified the contract, your lender probably had not requested the condo letter yet. Ask your loan officer for a copy of the condo disclosure letter. If the information is in the letter, your lender should have disclosed that to you because it would affect your ability to repay the loan. If the information is not in the letter sent to the lender and it was after the date the seller learned about the assessment, the condo management company or whoever prepared the document could have a liaiblity for not providing the information when it was known.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Does anyone know the legal requirements for disclosures? Specifically, what happens if the seller finds out about something major between signing the contract and disclosure form and closing on the sale? Turns out a seller was provided an update by the condo board after we ratified the contract. However, we didn't find out about this update until after closing. It's an update that's going to cost a significant amount of money on our end. Any advice is appreciated.

The condo board should have sent you a condo questionnaire. Most banks require this. If they sent you a questionnaire which didn't reflect the update you are talking about and the update happened before they sent you the questionnaire, then it seems like they were hiding it from you. If the update happened after you were sent the questionnaire, then I don't think there is much you can do. Either way, the only thing you could do would be to sue, and that's expensive and likely not worth your time or the legal fees.

What exactly was the update?

NP here:
An assessment, duh. Sounds like the seller had some inside information. These things don't just miraculously appear out of thin air.

What does the contract say, OP? Is there any wiggle room to get out of the deal? How much money are we talking about? 10K or 50K?

Is in the tens of thousands. We already Purchased the condo.

Here's what happened. We ratified the contract on a Monday. On a Wednesday the seller was notified of actions the board would take regarding structural problems. No one told us. Then we closed four weeks later. Now we have an assessment for problems the seller was informed of prior to closing but did not tell us.

This should definitely have been disclosed. It sounds like you should sue.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Does anyone know the legal requirements for disclosures? Specifically, what happens if the seller finds out about something major between signing the contract and disclosure form and closing on the sale? Turns out a seller was provided an update by the condo board after we ratified the contract. However, we didn't find out about this update until after closing. It's an update that's going to cost a significant amount of money on our end. Any advice is appreciated.

The condo board should have sent you a condo questionnaire. Most banks require this. If they sent you a questionnaire which didn't reflect the update you are talking about and the update happened before they sent you the questionnaire, then it seems like they were hiding it from you. If the update happened after you were sent the questionnaire, then I don't think there is much you can do. Either way, the only thing you could do would be to sue, and that's expensive and likely not worth your time or the legal fees.

What exactly was the update?

NP here:
An assessment, duh. Sounds like the seller had some inside information. These things don't just miraculously appear out of thin air.

What does the contract say, OP? Is there any wiggle room to get out of the deal? How much money are we talking about? 10K or 50K?

I agree completely. If the building is at the point where they've already figured out special assessments, it means they've known about the issue for awhile, already discussed it, already received quotes from various contractors, voted on it, and determined the special assessment. My bet is that they've known for a year, and it's probably the reason why they sold.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Does anyone know the legal requirements for disclosures? Specifically, what happens if the seller finds out about something major between signing the contract and disclosure form and closing on the sale? Turns out a seller was provided an update by the condo board after we ratified the contract. However, we didn't find out about this update until after closing. It's an update that's going to cost a significant amount of money on our end. Any advice is appreciated.

The condo board should have sent you a condo questionnaire. Most banks require this. If they sent you a questionnaire which didn't reflect the update you are talking about and the update happened before they sent you the questionnaire, then it seems like they were hiding it from you. If the update happened after you were sent the questionnaire, then I don't think there is much you can do. Either way, the only thing you could do would be to sue, and that's expensive and likely not worth your time or the legal fees.

What exactly was the update?

NP here:
An assessment, duh. Sounds like the seller had some inside information. These things don't just miraculously appear out of thin air.

What does the contract say, OP? Is there any wiggle room to get out of the deal? How much money are we talking about? 10K or 50K?

I agree completely. If the building is at the point where they've already figured out special assessments, it means they've known about the issue for awhile, already discussed it, already received quotes from various contractors, voted on it, and determined the special assessment. My bet is that they've known for a year, and it's probably the reason why they sold.

Update. I went back to the letter that was sent to the seller two days after we ratified our contract. The seller was told by the hoa that there are issues but that it's up to the owner whether to disclose. The hoa said their lawyer determined that this information wouldn't be provided in the condo documents provider to potential buyers. At this point the seller didn't know there would definitely be an assessment but that there may be an assessment and that there are issues with the building. He knew this before closing.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Does anyone know the legal requirements for disclosures? Specifically, what happens if the seller finds out about something major between signing the contract and disclosure form and closing on the sale? Turns out a seller was provided an update by the condo board after we ratified the contract. However, we didn't find out about this update until after closing. It's an update that's going to cost a significant amount of money on our end. Any advice is appreciated.

The condo board should have sent you a condo questionnaire. Most banks require this. If they sent you a questionnaire which didn't reflect the update you are talking about and the update happened before they sent you the questionnaire, then it seems like they were hiding it from you. If the update happened after you were sent the questionnaire, then I don't think there is much you can do. Either way, the only thing you could do would be to sue, and that's expensive and likely not worth your time or the legal fees.

What exactly was the update?

NP here:
An assessment, duh. Sounds like the seller had some inside information. These things don't just miraculously appear out of thin air.

What does the contract say, OP? Is there any wiggle room to get out of the deal? How much money are we talking about? 10K or 50K?

I agree completely. If the building is at the point where they've already figured out special assessments, it means they've known about the issue for awhile, already discussed it, already received quotes from various contractors, voted on it, and determined the special assessment. My bet is that they've known for a year, and it's probably the reason why they sold.

Update. I went back to the letter that was sent to the seller two days after we ratified our contract. The seller was told by the hoa that there are issues but that it's up to the owner whether to disclose. The hoa said their lawyer determined that this information wouldn't be provided in the condo documents provider to potential buyers. At this point the seller didn't know there would definitely be an assessment but that there may be an assessment and that there are issues with the building. He knew this before closing.

Lawyer up. Any special assessment that was decided on by the condo board should have been in the condo disclosures that you received.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Does anyone know the legal requirements for disclosures? Specifically, what happens if the seller finds out about something major between signing the contract and disclosure form and closing on the sale? Turns out a seller was provided an update by the condo board after we ratified the contract. However, we didn't find out about this update until after closing. It's an update that's going to cost a significant amount of money on our end. Any advice is appreciated.

The condo board should have sent you a condo questionnaire. Most banks require this. If they sent you a questionnaire which didn't reflect the update you are talking about and the update happened before they sent you the questionnaire, then it seems like they were hiding it from you. If the update happened after you were sent the questionnaire, then I don't think there is much you can do. Either way, the only thing you could do would be to sue, and that's expensive and likely not worth your time or the legal fees.

What exactly was the update?

NP here:
An assessment, duh. Sounds like the seller had some inside information. These things don't just miraculously appear out of thin air.

What does the contract say, OP? Is there any wiggle room to get out of the deal? How much money are we talking about? 10K or 50K?

I agree completely. If the building is at the point where they've already figured out special assessments, it means they've known about the issue for awhile, already discussed it, already received quotes from various contractors, voted on it, and determined the special assessment. My bet is that they've known for a year, and it's probably the reason why they sold.

Update. I went back to the letter that was sent to the seller two days after we ratified our contract. The seller was told by the hoa that there are issues but that it's up to the owner whether to disclose. The hoa said their lawyer determined that this information wouldn't be provided in the condo documents provider to potential buyers. At this point the seller didn't know there would definitely be an assessment but that there may be an assessment and that there are issues with the building. He knew this before closing.

Lawyer up. Any special assessment that was decided on by the condo board should have been in the condo disclosures that you received.

But there is a distinction. They letter to the owners said there MAY be a special assessment as a result of the issue. And that the owner can choose whether to disclose this to a buyer. The letter did not say for certain there would be an assessment. Regardless, we are upset we weren't informed of this issue and it is probably why the previous owner sold.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Does anyone know the legal requirements for disclosures? Specifically, what happens if the seller finds out about something major between signing the contract and disclosure form and closing on the sale? Turns out a seller was provided an update by the condo board after we ratified the contract. However, we didn't find out about this update until after closing. It's an update that's going to cost a significant amount of money on our end. Any advice is appreciated.

The condo board should have sent you a condo questionnaire. Most banks require this. If they sent you a questionnaire which didn't reflect the update you are talking about and the update happened before they sent you the questionnaire, then it seems like they were hiding it from you. If the update happened after you were sent the questionnaire, then I don't think there is much you can do. Either way, the only thing you could do would be to sue, and that's expensive and likely not worth your time or the legal fees.

What exactly was the update?

NP here:
An assessment, duh. Sounds like the seller had some inside information. These things don't just miraculously appear out of thin air.

What does the contract say, OP? Is there any wiggle room to get out of the deal? How much money are we talking about? 10K or 50K?

I agree completely. If the building is at the point where they've already figured out special assessments, it means they've known about the issue for awhile, already discussed it, already received quotes from various contractors, voted on it, and determined the special assessment. My bet is that they've known for a year, and it's probably the reason why they sold.

Update. I went back to the letter that was sent to the seller two days after we ratified our contract. The seller was told by the hoa that there are issues but that it's up to the owner whether to disclose. The hoa said their lawyer determined that this information wouldn't be provided in the condo documents provider to potential buyers. At this point the seller didn't know there would definitely be an assessment but that there may be an assessment and that there are issues with the building. He knew this before closing.

That seems odd. For HOA council to omit a brief to potential current buyers on "issues" and put the onus "up to the seller" may mean joint severability. Such a shame this has happened OP. You say the assessment cost is multi-thousand but not the exact amount. A lawsuit on this will clearly cost more than $10K in legal fees (more likely far more), and they are not tax deductible on personal taxes.

I wonder if there is any protection for you buried in the D.C. condominium legal regulations regarding lack of disclosure by the HOA of known problem/need for fix. Think this may have happened at the Watergate Coops in the past. I'd do some leg work and yes, I'd be very p**sed.

[Anonymous]

OP, you really need to talk to a real estate attorney who knows the regs a lot better than a bunch of amateur real estate junkies on the internet, and who also will be able to look over everything that was provided to determine if they were in compliance with the law. I'm sure a consultation with an attorney isn't another expense you'd like to incur right now, especially if you end up not having any recourse, but it's worth it to make sure you get good advice.