Legal Question in Real Estate Law in New Jersey
During contract stages, what should I do if a major problem happens to a condo I
I am buying a condo apartment on the third floor of a five floor building. I am past the inspection period and attroney review but have not closed yet. Last week heavy rains caused the roof to leak into the two units above me and there is water damage on my walls. My understanding is that the confo association would take care of this out of their reservers. However, I worry that down the road, I will be footing the bill for this for example in higher monthly maintenance bills to replenish the reserve. Is this a reasonable fear and how do I protect myself?
2 Answers from Attorneys
Re: During contract stages, what should I do if a major problem happens to a con
The seller should be responsible for repairing any damages between contract and closing. If the repairs are partially the responsibility of the condo association, you may want to ask the seller to indemnify you for any special or increased assessments that may result from this damage/repair. You would need this in writing and want it to survive settlement.
Another option would be to escrow some of seller's proceeds of sale until you can determine whether or not there will be increased assessments based on this issue. The escrowed funds would be applied to paying such special or increased assessments, and any excess in the escrowed fund would then be released to the seller.
Either of these approaches should be documented in writing and signed by the seller and buyer.
Re: Payment for condo repairs
Whether or not the repairs are the obligation of the condo association would be determined by the condo documents. You need to review them in order to make this determination. If they are not responsible, then the Seller would be liable until closing. If it is not repaired by that time, you would need to escrow sufficient monies to be sure it is completed. The bigger issue is your concern about increased assessments. Assessments can be made by the condo association board and/or by majority vote of the owners, depending on the way the By-Laws are drafted. Even if you object, you may be bound to pay the increases if the approval is properly given for any increased assessment. Keep in mind that this advice is based purely on the little bit of information that you have given to me. There certainly may be other factors that would change my opinion. Further, no one can rely on advice from an attorney who has not been retained. Since it appears that you have not retained an attorney, you may want to contact an attorney (either me or someone else) to discuss your matter in more detail. Only then will you be able to rely on the advice. I will be happy to assist you. However, you need to call me at 856-546-8010. Mention Law Guru and your first consultation is free. Good luck! Rob Gleaner
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
