Selling an inherited condo

[2ndhand]

What is the name of your state? Florida
Myself and two step-sisters each inherited 1/3 of a condo when our parents passed away. We are now trying to sell it. I am "out of the loop" for the most part, as the eldest sister is executor of the estate and we are not close at all.
My question is this:
If previous mold and water damage, along with repairs are disclosed during the selling process (it is being sold through a real estate agency) if there a reason for each of us to have to put a lump of money from the proceeds into a fund and held for a year in case of lawsuits? I was told that the concern is the eldest can be sued since she is executer and we are doing this to "protect" her. My issue is, I don't see why this would come up if we are honest about disclosing information. I thought that was what disclosure was, to tell problems so buyers can't come after you for something they were informed of before the deal closed. I am not comfortable with putting $10,000 of my money in a fund for a year. I would also mention that the lawyer for my step sisters is their cousin....I smell a rat..
Thanks, Lisa

[lcannister]

If you do not want it coming back to bite then FULL disclosure is necessary. This is not something that is SAID (oral) but it put in writing.

Sounds like sis really doesn't want to disclose so she can get more money but just in case cover her ASSets by setting aside the funds.

Having said that this is not a house you all lived in day to day so you are not expected to know as much about the house as the owner. The agent assisting should know how to make a contract that more or less says that.

Having said that it is not all that unusual for an estate to retain several thousand dollars for seveal months when then FINISHING issues still linger.

[JETX]

Originally Posted by 2ndhand

If previous mold and water damage, along with repairs are disclosed during the selling process (it is being sold through a real estate agency) if there a reason for each of us to have to put a lump of money from the proceeds into a fund and held for a year in case of lawsuits?

Though possibly not required, it is good practice, as there are lots of cases where a buyer COULD make a claim as to disclosure.

I was told that the concern is the eldest can be sued since she is executer and we are doing this to "protect" her.

Ignore 'lcanns' GUESS about any reasons your sister might have. There is NOTHING in your post to even suggest such a case. Personally, I feel that her idea is good sound practice to protect the sellers (all of you) in the event of a claim.

I don't see why this would come up if we are honest about disclosing information. I thought that was what disclosure was, to tell problems so buyers can't come after you for something they were informed of before the deal closed.

A disclosure does NOT protect you against an initial claim and possible legal fees. The issue of 'sufficient disclosure' or not is entirely up to a court to decide.

I am not comfortable with putting $10,000 of my money in a fund for a year.

Why not?? Sounds like a good idea to me.

I would also mention that the lawyer for my step sisters is their cousin....I smell a rat.

To see the rat, look in the mirror. Document the account and how the funds (plus interest) will be split/returned after the risk is removed and move on.
BTW, there is NO reason for an attorney to be involved.... so the cousin issue is moot.