Q: Hi, I am an officer of our condo association. The units are at the seashore and not winterized.
One owner is selling his unit as "year-round". Does the Association have a fiduciary duty to disclose this misrepresentation to the realtor or buyer? Can the Association be held liable if it does not? The building was originally sold as year-round, but that was a fraudulent representation. There is no insulation in the exterior walls and water pipes are exposed. Every owner shuts off their water from November to April, including the seller of the unit in question.
Thanks for your opinion!
Joel
A:
All my answers are based on NJ statutes and case law. I am not familiar with PA law. So assuming the development were in NJ, I would answer as follows.
There would be no obligation for the Association to review every ad with Seller's puffing in it. I would assume you are referring to a FSBO (For Sale by Owner) transaction as local real estate brokers should be knowledge and advise their clients accordingly. Since Condo dues are assessments that are a first lien and run with the land, a prudent buyer (or the buyer's attorney) will write to the association for a status report as to the assessments and whether there are any unpaid or unpaid or pending assessments. t would be prudent when responding to insert a paragraph about responsibility of unit owners to shut and drain water lines and secure the units as they units are not for year long residence. Are the condo documents clear that no occupancy is permitted during the winter months. Counsel for the association should be questioned about this. Depending on counsel's response, the association may wish to record an amendment specifically stating this as well as the penalties that may be assessed for violation.
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