Sat, 5 July 2008
July 5, 2008
I received, however, a letter from our homeowners association stating that severe water penetration issues have been discovered in several of the condominiums in our complex, but not in our unit, and the exterior stucco had to be removed and the outer structure in these Units needed to be rebuilt. The letter also speculates that the
water issues may be much worse than expected and further investigations have begun.
In signing the purchase agreement, I had to disclose this information by forwarding this letter to the buyers, and the buyers obviously backed out of the purchase agreement. I offered the buyers a $10,000 escrow account that they could use toward future special
assessments levied within the next year. The buyers signed the purchase agreement again and everyone is following through with the sale process.
My question is do I have any legal recourse against the association, or anyone else? The association has essentially made our property value worthless and unsalable in this market. We lost our purchase agreement because of their actions -or inaction. ,
The complex was built in 1984, so action against the builder is outside the 10-year window. The condo association has claimed they have been inspecting the stucco every two years for the last decade or so. The only confirmed time I know about was in 2006, and they didn't report any problems then. They have apparently been inspecting using a moisture probe.
Right now, I'm stuck with this property. I can't turn it over to the bank; they obviously
won't take it. I can't even short-sell it, because no one else will buy it. I just have to continue making double housing payments and hope another buyer comes along who doesn't notice the problems if the buyer I have fails to get to closing.
determine when they will obtain bids to make the repairs and how much each unit
will be assessed. This information will possibly help in selling the unit or entering into a short sale with the lender. The events have placed you in a difficult position with no clear or immediate solutions.