The New York City real estate market is relatively competitive. Those looking to buy property sometimes make major concessions in order to complete the process as quickly as possible. They forego inspections or make aggressive offers.
Given that New York has relatively robust disclosure requirements, those buying residential real estate may assume they can make an aggressive offer with minimal risk, as they should have accurate information about the condition of the property. They may expect an inspector to identify any serious issues with the property.
Unfortunately, sometimes sellers intentionally withhold information about latent defects. They may operate under the assumption that inspectors won’t notice issues with the foundation, the wiring or the plumbing. The buyer may then discover significant and costly property issues after taking possession. Real estate litigation can help resolve property disclosure issues that put buyers in an untenable situation.
Sellers cannot misrepresent the property’s condition
Performing due diligence is crucial before committing to any major transaction. However, those buying real estate may not have the knowledge or access to identify all serious property defects. While they should try to verify the condition of the property, they should also be able to trust that the seller has accurately represented its condition.
Those selling real estate have a legal obligation to provide accurate information about the condition of the property itself and its major systems. They cannot avoid that responsibility by listing the property in as-is condition or indicating on the mandatory disclosure checklist that they don’t know the condition of systems when they are aware of issues.
Provided that buyers uncover major property issues and can show that the seller knew about the problem, possibly because they took steps to hide the issue, they may have grounds to take legal action. A lawsuit related to disclosure violations could help buyers cover the cost of making major repairs. They could also theoretically seek compensation for the discrepancy in property value caused by the defect.
Frustrated buyers dealing with significant latent defects and diminished property value may need help gathering evidence and building a viable legal case. Getting the right support early in the real estate litigation process may help increase the chances of success for frustrated buyers who were unaware of property issues when making their offer and negotiating their purchase agreement.