Are sellers required to disclose pending litigation related to the property for sale?

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Are sellers required to disclose pending litigation related to the property for sale?

Our former landlords listed their home for sale at the end of our lease. They are withholding our security deposit for items related to the pending sale of their home for items like replacing faucets, shower heads, cleaning HVAC system, etc. We understand these items cannot be deducted from our security deposit and we have started legal proceedings by sending a demand letter. They also did not include a pre-move in checklist of the condition of the property as also required by state law. We will then file suit in small claims court if they do not respond. However, I was wondering if there is a requirement to disclose the pending suit related to the property to the potential buyers who are under contract. We are looking for some leverage as the landlords are basically using our security deposit for costs associated with selling their home. As a side note, their home was listed at $115,000 more than they paid for the home the same month we moved in. They listed the home the day we moved out and it went under contract within 24 hours. We were outstanding renters and the house was immaculate. They are truly being unethical in their dealings with our deposit.

Asked on September 19, 2019 under Real Estate Law, Nevada

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 2 years ago | Contributor

No, they are not required to disclose this, because the litigation is against them personally, not the home: the home's title (and its transferrability) is not affect by your suit for your deposit. Only conditions physically affecting the home or its title must be disclosed.


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