Profile picture for Craig Brew

Disclosure responsiblity of the sellers agent?

Shouldn't the seller's agent put in a listing that a property does not quality for a bank loan or indicate the sale should be an all cash sale when the HOA delinquency rate is high enough to precent a loan from being approved? How does a first time condo buyer know to ask these questions before spending a lot of money to get appraisals, inspections, etc? Case of you don't know what you don't know?  I would expect the realtors to know these things and advise the buyer (as well as the sellers).  is ther eany recourse against the seller's agent to recoup monies spent?
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
September 25 2013 - Chicago
We think we've answered this question for you!
  • Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.
 
 

Answers (8)

I am afraid to say I don't think you have any recourse against the selling agent. Brokers are required to disclosure defects in the property that affect habitability. That is why when you signed your offer you were given a property report and lead, mold and radon disclosures. 

At some point before making the offer or during attorney review, your agent should have asked about reserves, what is the financial health of the building, reviewed the 22.1 and done some research on recently closed sales. I would think it would have come up. 
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
October 11 2013
In illinois buyer needs to do his own do diligence as well. However, this information is considered private and confidential and reviled only to its members, attorneys, and banks asking for this info to approve a loan.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
September 25 2013
To clarify all comments below: Yes, even though there is no law, listing agent should research this and list it. Thru is that most of the listing agents are too lazy to even find out the condo name, let alone anything else. It is not buyers agent task to find out as most of the associations will not talk to them about it. It would be stated in the forms from the lander. The lander should always get these sent out to the association asap. However, lately most of them do it at the end as it costs them extra $ and they want to make sure you qualify 100% before they spend any $.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
September 25 2013
In Florida, it is the buyer's responsibility as part of their due diligence, to find out all of these things out. If you have a buyer's agent, they should have uncovered these facts during your inspection period so you would not have to pay for everything, only to find out that you can not even close on the home. It ultimately falls back on you however, since you are buying the property. 
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
September 25 2013
Not all agents take the time to know this information.  The good ones, who value your family and want to build a relationship for life will figure this out for sure.  It can at any number of points in the process however they should find out prior to being in contract.  Do you have recourse was your question... likely no is the strait answer.  I would suggest asking your next agent for referrals of recent closed transactions.  Are you still looking for a condo?  I would be happy to assist.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
September 25 2013
Not all agents know this sort of information. It becomes very upsetting when you as a buyer run into this. I would work with a good buyers agent. They can tell you which ones you can and cannot get loans in.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
September 25 2013
Agents for the seller, particularly on REO's, but sadly on regular transactions, often do not do any minimal homework on the HOA to see if there might be issues like you describe. It is rather pathetic, but more common than it should be. About all you can do is complain tot he Managing Broker for the office that agent works for.
However, in the Attorney review time frame right after you sign a contact with the seller, you are supposed to get certain condo documents including the 22.1 Disclosure and that document will answer certain questions which relate to the ability of the building to get a loan. I am assuming you did not have an agent on your side, but your attorney should have picked up on it and the lender should have read it before they proceeded to get the appraisal.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
September 25 2013
If you expect the Realtors to know these things then your buyers agent should be telling you, RIGHT? Don't you go speak to a lender before you go make an offer on property, they would know which condos they are not approving, did your buyers agent ask your lender before making an offer and asking for a pre-qual letter for you to present with your offer? Some things you just don't know as a listing agent, unless someone was turned down and it was explained why I am not sure the sellers agent would know. You can expect it, but it's a lenders rules and not all lenders follow the same rules.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
September 25 2013
 
Related Questions
Short sale house back on the market by I gave earnest money. Shouldn't they contact me first?
Profile picture for Mike Opyd
Latest answer by Mike Opyd
6 days ago | 8 answers
Can I buy a house with bad credit?
Profile picture for sunnyview
Latest answer by sunnyview
July 01 | 23 answers
my realtor suggests offering full price then waiting for the appraisal to come back lower is this ok
Profile picture for John Meyers
Latest answer by John Meyers
June 22 | 42 answers
Buying in building with no rental cap
Profile picture for Mike Opyd
Latest answer by Mike Opyd
June 05 | 3 answers
Short Sale; Mortgage is processed but no word on closing...
Profile picture for Newman Mitrick Group
Latest answer by Newman Mitrick Group
May 08 | 10 answers
Mortgage Rates
 
Be A Good Neighbor

Zillow Advice depends on each member to keep it a safe, fun, and positive place. If you see abuse, flag it. More on our Good Neighbor Policy.

Homes for Sale
  1. 4153 W Wellington Ave, Chicago, IL Home For Sale
    4153 W Wellington Ave, Chicago, IL 60641

     For Sale: $280,000

    • Beds: 4
    • Sqft: --
    • Baths: --
    • Lot: --
  2. 4141 N Dickinson Ave, Chicago, IL Home For Sale
    4141 N Dickinson Ave, Chicago, IL 60641

     For Sale: $175,000

    • Beds: 3
    • Sqft: 1284
    • Baths: 1.0
    • Lot: 4375
  3. 10415 S Longwood Dr, Chicago, IL Home For Sale
    10415 S Longwood Dr, Chicago, IL 60643

     For Sale: $369,900

    • Beds: 4
    • Sqft: 2606
    • Baths: 2.0
    • Lot: 8200