Legal Question in Real Estate Law in California

Buying a condo in litigation

I am looking to buy a condo. I currently own a home, but I have never bought a condo before. The unit I am interested in buying is currently in litigation. My realtor told me the home owner's association sues the builders for some water damage that was caused by bathtubs being installed incorrectly. She told me that the law suit has already been won (the HOA won,) and they are just waiting to get the money. She said the current tenants have already paid the assesment for the law suit. It is still in litigation becuase the money hasn't acutally been paid yet, but the law suit was won. She told me it might be difficult for me to get a loan for the property becuase of the litigation.

Is there anything else I should look out for? How can I make sure I won't have a big assesment to pay right after I buy? DOes the realtor have to diclose all info to me about the law suit, or could she just be trying to get me in the building?

Thanks in advance for your response.


Asked on 4/29/03, 11:23 am

1 Answer from Attorneys
Ken Koenen Koenen & Tokunaga, P.C.

Re: Buying a condo in litigation

The Realtor and the seller are required to disclose that the complex is in litigation. It is your responsibility to investigate the status. Generally, you can go to the HOA management company, and they will have documents you can review, and copies of past minutes, budgets, etc.

Many lenders will not finance a unit that is in litigation without a large down payment. the good news is that, if you do have a large down payment and get the financing, you can purchase the unit at a lower price than if it was not in litigation.

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Answered on 4/29/03, 12:39 pm


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