We purchased a condo from HomePath(FannieMae owned) couple of months ago. There was no diclosure of an ongoing lawsuit against condo converter regarding the defect/recalled fire sprinker system. The HOA disclosures did not mention such information nor does HomePath the seller disclosed it. Now the board passed an emergency assessment for each home owner to pay close to $4000 out of pocket to replace sprinker heads in order for the condo to pass the 5 year fire sprinker certification. If disclosed to me properly I would not have made the same offer on the purchase. Who can I sue for mispresentation to recover the cost of sprinker heads repair out of nowhere? Can I go to small claim court? Who is liable for the discloure of ongoing lawsuit, HOA, HomePath, or Listing agent? There was another offer accepted before us but backed out for whatever reason. It's possible previous offer was withdrawn because buyer can't get financing due to HOA lawsuit? If this is the case, shall listing agent disclose the pending lawsuit to us even though our offer was a cash offer?
1 Answer from Attorneys
Normally, any material lawsuits have to be disclosed through escrow. The Seller, Broker, and/or the Association may be liable. Please PDF us your escrow documents and we may bel able to specifically answer your question.