Is a bank obligated to disclose information about problems with real estate property when they sell the property to another bank after foreclosing?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Is a bank obligated to disclose information about problems with real estate property when they sell the property to another bank after foreclosing?
My deceased mother’s house was deeded back to the bank, after a major septic system problem was discovered by an inspector. That bank then sold the house to another bank, presumably without addressing the problem. The new owner has the house listed for sale now, with no mention of the septic problem. Are they not obligated to let potential buyers know about the $30K problem? I am concerned about any potential buyer of this house.
Asked on December 14, 2011 under Real Estate Law, Washington
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
Under the laws of all states in this country, the owner of real property is required to disclose preferably in writing to all prospective purchasers of real property all conditions known as to the parcel listed for sale that would impact the price or desirability to a buyer of the property.
The key is known problems by the seller requiring disclosure. The septic issue problem regarding $30,000 to repair is clearly an issue if known to the seller of the property that you are writing about that needs to be disclosed to a buyer before close of escrow.
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.