In Arizona if an apartment complex goes into foreclosure and is bank-owed and then sold to a 3rd party, does the new ownership assume contracts that the bank signed?
In my case the bank's management company signed a 2 year deal that constituted monthly payments of which the bank's management company paid 6 months. Once sold the new ownership continued to pay for the next 5 months. I then receive a letter of discontinuing service in 2 months. Has the new ownership assumed the contract or is there some precedent that the contract responsibility was transferred to the new ownership?
1 Answer from Attorneys
I'm not entirely certain I understand the full facts here, but what type of contract did you sign? Generally speaking there is no guaranty that contracts rights, duties, obligations are assigned or delegated. Also, generally speaking, there is a breach of contract action against the party you originally contracted with under a theory called privity of contract. Finally, in general, a duty to pay can be transferred, and so long as you are receiving payments from the new party you would have no action against the original contracting party. However, every contract is different, and these are just some general concepts. Without a full understanding of the situation it is difficult to provide any type of specific information to your situation.
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