Can I sue the seller and the seller’s agent for fraud for withholding the condo covenants relating to our ability to rentthe unit?

UPDATED: Sep 3, 2011

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

Can I sue the seller and the seller’s agent for fraud for withholding the condo covenants relating to our ability to rentthe unit?

We purchased a condo 3 years ago. The listing stated it would be a “Great Rental Property”. The seller gave us a copy of the condo covenants but withheld 3 updated rules regarding rental properties – essentially they do not allow rentals for any reason. Now flash forward to today and we have had to move out of our condo out of state and we can’t lease it to cover the mortgage. Seller and seller’s agent were very aware of their actions. Can we sue them for fraud?

Asked on September 3, 2011 under Real Estate Law, Georgia


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

In any sale of real proeprty in this country, the seller is required to disclose all facts known to the seller that would materially impact the property's desirability by a purchaser or price paid. The listing for the property that assisted in inducing you to purchase it mentioned its ability to be a "great rental property".

Part of the reason why your purchased the property was its ability to be rented out. You have just found out that this is not the case. You have the factual basis to sue the selelr and even the listing agent for negligent misrepresentation, intentional misrepresentation, concealment and breach of contract.

Since sale closed over three years ago, you may have some statute of limitations issues running.

I recommend that you consult with a real estate attorney as to your legal options.

Good luck.

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 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 lock Secured with SHA-256 Encryption