Legal Question in Real Estate Law in Georgia
Apartment Sale
Is a new owner of an apartment complex bound by any existing agreements if they were not disclosed to him/her or found during a title search of the property? Examples might be a telecom or cable agreement that was not disclosed or found during title search.
Thanks
3 Answers from Attorneys
Re: Apartment Sale
That is why you buy title insurance. Look at your owner's policy of title insurance and make a claim (follow the instructions on the cover of the policy) for monetary damages due to undisclosed encumbrances.
Re: Apartment Sale
Very likely, you are bound. Remember that apartment leases do not appear of record, and would not be revealed by a title search. To prevent this, you should have required the seller to provide a letter from each tenant, setting forth the terms of his lease and any amendments or side agreements (or stating that there are none) and that he has no claims agaisnt the seller for breach.
However, you may have a legitimate claim against the seller for failure to disclose the side agreement, or for breach of warranty, if he warranted against the existence of agreements outside of the leases.
Re: Apartment Sale
Probably not. However, I have a feeling, based on my experience in real estate matters, that your situation probably merits at least a little more investigation. Feel free to give me a call if I can be of service.
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