Is a bank obligated to disclose information about problems with real estate property when they sell the property to another bank after foreclosing?
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Is a bank obligated to disclose information about problems with real estate property when they sell the property to another bank after foreclosing?
My deceased mother’s house was deeded back to the bank, after a major septic system problem was discovered by an inspector. That bank then sold the house to another bank, presumably without addressing the problem. The new owner has the house listed for sale now, with no mention of the septic problem. Are they not obligated to let potential buyers know about the $30K problem? I am concerned about any potential buyer of this house.
Asked on December 14, 2011 under Real Estate Law, Washington
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
Under the laws of all states in this country, the owner of real property is required to disclose preferably in writing to all prospective purchasers of real property all conditions known as to the parcel listed for sale that would impact the price or desirability to a buyer of the property.
The key is known problems by the seller requiring disclosure. The septic issue problem regarding $30,000 to repair is clearly an issue if known to the seller of the property that you are writing about that needs to be disclosed to a buyer before close of escrow.
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