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?
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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 12 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.
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