Saratoga Springs, UT asked in Real Estate Law for Utah

Q: Can seller be held liable for non disclosure of future HOA assessment that took place after sell of home?

We are being sued buy the buyers of our home for an HOA assessment that took place 5 or 6 months after the sell of the home. We knew there were issues with the moisture barrier of some of the homes in the neighborhood but our home had no such issues (this was disclosed). Apparently the HOA sent out an e-mail Oct 2019 (10 months before closing) stating they were looking into the situation and that an HOA increase/ and or assessment would be levied in the future. Neither my husband nor I read this e-mail and therefor did not willingly deceive our sellers in not disclosing this. They are claiming we did though and are suing us for 900 times the monthly increase amount. Are we liable or should this have been part of the buyers due diligence?

Related Topics:
1 Lawyer Answer
Kenneth Prigmore
Kenneth Prigmore
  • Spanish Fork, UT
  • Licensed in Utah

A: Whether or not you are liable is a judgment call. A judge might determine that since the email was issued by the HOA and it arrived in your email box, you had opportunity to review the email and warn the buyer.

OR, a judge might decide that the email had no specific meaning as you had no idea whether an assessment would happen, and you already informed the buyer that an HOA existed making them clearly aware that assessments would be a possibility.

Absent you having the problems on your property that the HOA wants to fix, you might not believe, even after reading the email, that you would be assessed to fix someone else's problem.

The ambiguity involved means this is not an open and shut case based on your description. I would take the lawsuit seriously, but I would not base my response on the expectation that you would lose if you went to court.

I don't do litigation, but I do recommend that you find an attorney that has litigated many Real Estate transaction issues in the past. Expect to get a free first appointment to determine what that attorney can do for you.

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.