Legal Question in Real Estate Law in California
I have just signed a purchase contract on a condo, and only now (while in escrow) the sellers are telling me that they have a private contract to "manage" the condo (separate from the HOA), and they pay $200 per month to the "manager". There is no item on the real estate disclosure form about management contracts like there are items about tenants, permits, and such. I have not seen the contract yet, but am I expected to inherit it, or is it void upon sale/transfer of the property? Were sellers obligated to disclose this contract before we agreed on the price?
2 Answers from Attorneys
Are you buying this condo as a rental? Otherwise I can't even begin to figure out why there would be a private management contract. In any case, unless the contract is recorded in the chain of title and gives binding rights attached to the title to the condo, it should not transfer with sale. Without seeing all the relevant documents, however, it is impossible to say for sure.
Your post doesn't make any sense. I see why Mr. McCormick states that you must be buying it as a rental. You are not bound by some goofy management contract, their right to manage the property as landlords terminates the day you take title. You are the new landlord in that situation. They no longer have an interest in the property, so what is there to manage?
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