Who's responsible for disclosing my condo has an addition?

[MNK]

I recently purchased a condo in Michigan for about $100,000 and had your standard condo inspection done on the property – drywall in. After we closed and moved in, the HOA president mentioned to me the 4 season addition had foundation issues and would need a $12,000 repair, and that since the room was an addition it was fully my responsibility including the exterior and foundation. The problem is, I didn’t know this room was an addition or that additions were fully the owners responsibility so I didn’t have it inspected and was unaware of this expensive issue! I didn’t see this expressly stated in the bi-laws either. On top of that, the seller did not disclose the issue in the sellers disclosures despite being aware of the issue.

So I have two questions:

Where did we miss communicate? Should I have known to ask if the room was an addition? It seems like something like that should have been brought to my attention prior to purchasing the unit even if there weren’t issues just so I could get the appropriate inspection. Should the HOA president have brought this to my attention earlier on since he was aware?

What avenues can I take to get this fix paid for?

 

[Zigner]

I would suggest that you pay for a sit-down with a local attorney who can review your sales/purchase agreement (and other documents related to the purchase), as well as the HOA docs. That is beyond the scope of this forum.

 

[MNK]

I have actually. We have issued a demand letter requesting the seller pay for the repair, but I haven't heard anything and the lawyer isn't the most responsive person I've met.

 

[Zigner]

I have actually. We have issued a demand letter requesting the seller pay for the repair, but I haven't heard anything and the lawyer isn't the most responsive person I've met.

If you don't like your attorney, then fire him/her and find a new one.

 

[LdiJ]

I have actually. We have issued a demand letter requesting the seller pay for the repair, but I haven't heard anything and the lawyer isn't the most responsive person I've met.

If the HOA person is the only person that has told you of this problem you might want to get an actual contractor out there...perhaps two or three, to review things to determine if 1) there really is a problem and 2) if it would really cost that much to fix, IF there is a problem. One question you would need to ask the contractor(s) is if they are willing to testify in court as to the problem.

There is always a chance that the HOA president just wants the addition gone, and is hoping to scare you into tearing it down. After all, its pretty weird that the HOA president would have any reason to know that it would cost 12k to fix the problem.

 

[adjusterjack]

I have actually. We have issued a demand letter requesting the seller pay for the repair, but I haven't heard anything

What date was it sent.

the lawyer isn't the most responsive person I've met.

Be thankful. Every time he talks to you he adds it to his bill in increments of 15 minutes, rounded up.

Anyway, did you get a disclosure form from the seller?

It's required by law:

http://www.legislature.mi.gov/(S(jwb3402drsvsxtv3ajdggmxx))/mileg.aspx?page=getObject&objectName=mcl-Act-92-of-1993

I haven't studied the statute. You should.

I don't know what your remedy would be for falsifying one but I found the form and one of the questions appears to apply to your issue:

4. Structural modifications, alterations, or repairs made
without necessary permits or licensed contractors?
unknown___ yes___ no___

http://www.legislature.mi.gov/(S(jwb3402drsvsxtv3ajdggmxx))/mileg.aspx?page=getObject&objectName=mcl-565-957

When you first hired your lawyer did he explain the law, the form, the remedies for falsifying the form? If so, what did you learn from that?

You say the seller knew. How do you know that? How long did the seller own the unit? Any documentary evidence?

With regard to the CC&Rs, has your lawyer read them and explained any obligations you might have for the repair? I find that most people who read them misinterpret them.

 

[festival]

Contact your title insurance company to see if they will help.

An attorney that specializes in condos is more likely to have seen this situation before and to know the nuances and to know court cases about it.

Find out as much as you can about the addition before contacting an attorney. What are the boundaries of the unit as stated in the governing documents? Is the addition part of the condo unit, or is it appurtenant to the condo unit, or is it a limited common element? How does the association view the addition (as unit, common element, deeded space, assigned space, or what)? Was there any permission from the association to build the addition? Any written information from the association. Contact other owners who have the addition. Did the former unit owner construct the foundation of the addition, or was the foundation there before the addition was added on top of it?

 

[FarmerJ]

One thing you can do if you have not learned already is what the triggers are for your town or city as when permits are required SO if the structure had permits filed you could figure out when it was built so you would know if it was the last owner or one before. (keep in mind if your attorney has not acquired that information then its something she/he wont have to charge you to do )