-if the discussion about filing a claim happened, most likely there is a case against the builder and a legal action will start soon. The chances are the discussions are reflected in the HOA Board Minutes and that is a document that MUST be presented to the buyers;
-since the discussion took place, you will have to disclose any problems with the building, even if there is nothing wrong with your condo;
-think about it: a buyer can find out more about the building anyway from the neighbors, HOA Board and management company . That is what I advise my clients to do all the time.
-even if you are correctly checking the box in the disclosures that the building ' is NOT' involved in any litigation, if that is starting while the buyer tries to get a loan, it's OVER. The loan could be declined and your property will be back on the market.
You know it, therefore you can't hide it.
Alina Aeby- Broker Associate
Pacific Union/Christie's International Real Estate http://www.bestsfhomes.com
Some HOA's will withhold details from their own members out of fear that they will damage property values, rather than focusing on finding the truth, and repairing the damages correctly.
I live in a HOA where many people received and possibly took bad advice, and therefore many
sales just pre and post litigation were not done with full disclosure. Property values didn't drop
until the markets tanked in 2008-2009, but once they dropped, and the true extent of construction
damages could no longer be hidden, our values stayed about 50% down and still have not fully
recovered. Rather than creating a flood of lawsuits, it seems most people just rolled with it.
Likely because they understood how painful and expensive lawsuits are.
My advice: condos are not all bad, but if money means anything to you, keep in mind that you'll
likely end up having a bunch of strangers who are amatuers deciding how to spend your money
on maintenance and repairs.
You can't always find the home you want, and condos aren't a guaranteed nightmare, but there's
more than one reason why most people value SFHs more.
Hope this helps!
Downing & Co.
the best practice is to disclose
$$$BUYER CASH REBATE 50%-60% / SELLER DISCOUNT 50%$$$
Flavio Tejada, MBA-Finance, Realtor, Broker/Owner
Web Reference: http://americarealtyonline.com/