Recently purchased condo that is now in litigation

Asked by Rebegee, Lake Oswego, OR Mon Mar 10, 2014

I recently (within 6 months) purchased a condo that is now in pending litigation. I closed on 20Sep2013, and the suit was filed on 01Oct2013. The sellers and the seller's agent never mentioned that the HOA was going to file a suit against the developer and construction company for defective construction. They were certainly aware of the situation because a notification was delivered to all the condo owners about 5 months prior to the filing. Were they legally required to disclose that information to a potential buyer? Now that I own the condo, it will be very difficult to sell until the law suit has been settled and the defects have been corrected. This could take years. What are my options? Can I sue the sellers and/or the seller's agent for nondisclosure?

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JONI POWELL, Agent, Bend, OR
Thu Mar 27, 2014
If you are in Lake O and you are talking about the Oswego Summit Condo's, owners knew about it over a year before you purchased. They would have had to disclose it on the listing agreement. Also, as a specialist in the West Linn, Lake Oswego area, I have known about that problem for all of that time, and it is too bad your Realtor did not know. Definately talk to an attorney, but it may be too late now.

Joni Powell
Knipe Realty NW
0 votes
That sounds rough. They definitely should have disclosed the litigation before you bought, but it's not the end of the line. If you find a lawyer, you can fight the lease until they let you out of your contract. Selling will be very tricky at this point. |
Flag Sat Jan 3, 2015
Jennifer Pet…, Agent, Portland, OR
Wed Mar 12, 2014
I would highly recommend you contact a real estate attorney asap. You may have rights in this case, but Realtors are not allowed to give legal advice. Good luck with what sounds like a tough situation.
0 votes
Elizabeth Da…, Agent, Lake Oswego, OR
Tue Mar 11, 2014
Hi Rebegee,
I'm sorry you are having to deal with this, and had no idea it was coming. Hopefully your agent used the condominium/townhome sales contract when you wrote your offer. In this contract, it outlines all of the HOA documents you can request, and the list is extensive. If they were requested in your offer you should have received them well before closing. The meeting minutes at least should have mentioned the pending or possible litigation. This is why I always counsel my clients to speak with the HOA on the phone and specifically ask a list of questions, one of which is "is there any possible litigation coming up?". Also, yes, if the seller knew about the possibility of this happening, then they would have needed to disclose it. I too, am curious which condo project this is.
0 votes
Jason and Mi…, Agent, Portland, OR
Mon Mar 10, 2014
You had an opportunity to request the HOA meeting minutes which would have revealed any discussion of litigation. A home owner isn't always aware of upcoming litigation although they would be if they were paying attention. Yes, selling while in litigation makes it very difficult to sell as most lenders won't even start to look at loaning against a home that is affected by a community in litigation. Your buyer pool becomes reduced to cash buyers.
0 votes
Linda Heinri…, Agent, Lake Oswego, OR
Mon Mar 10, 2014
I am so sorry this has happened. The condo market is tricky and it seems like this should have been disclosed when you requested the last 12 months of minutes and other documents from the HOA. You should definitely contact your agent and they can better direct you as to the options you have.

Curious which Condo property this?
0 votes
Hi Linda,
Not sure if you remember me...I'm the sister of Jamie's co-worker/friend Lisa. I should have listened to your advice when we last spoke on the phone before I bought the condo! Silly me! It's the ones on Germantown Road (Cascade View Condos). I would really like the chance to chat with you again. Rebecca
Flag Tue Mar 11, 2014
Hi Rebegee, I recommend that you contact your Realtor and discover why this was not investigated during the process of purchasing? Sorry that you are in this predicament and hopefully you do not have to move while the litigation is in process. Best of luck.
Flag Tue Mar 11, 2014
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